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PR 23977: PORT ACRES DRAINAGE IMPROVEMENT PROJECT
City of nrt rthu Tt°cup www.PortArthurTx.gov INTEROFFICE MEMORANDUM Date: December 11,2024 To: The Honorable Mayor and City Council Through: Ron Burton, City Manager From: John Cannatella, PE, City Engineer RE: PR No. 23977: Port Acres Drainage Im ovement Project—Purchase an approximate 1.066 acre portion of land located near 2950 W. Highway 365 for$26,575.00. Project No. DR1 P03A. Introduction: The intent of this agenda item is to authorize the City Manager to purchase an approximate 1.066 acre portion of land located near 2950 W. Highway 365 for$26,575.00. Project No. DR1P03A. Background: Pursuant to Resolution No. 18-231, the City of Port Arthur (City) adopted the 2018 Disaster Recovery and Resiliency Plan (DRRP) for recovery activities following Hurricane Harvey. A master drainage plan was developed to address the significant flooding, flash floods, and drainage issues affecting the community of Port Acres, (i.e. Port Acres Drainage Improvement Project). 2950PARV Holdings, LLC, of Austin, Texas, is the fee simple owner of an approximate 1.066 acre portion of land, more or less, located at 2950 W. Highway 365, Port Arthur, Texas, which is necessary for acquisition by the City for use as part of the Port Acres Drainage Improvement Project. A motion was approved on June 2, 2024, to proceed with the land acquisition for the drainage project, with the final purchase approval to be granted by the City Council. Budget Impact: Funds are available in the Drainage System Account No. 307-21-055-8515-00-10-000 for the amount of $26,575.00. Recommendation: It is recommended that the City of Port Arthur's City Council approve PR No. 23977 authorizing the City Manager to purchase an approximate 1.066 acre portion of land located near 2950 W. Highway 365 for $26,575.00. Project No. DR1 P03A. "Rememher, we are here to serve the Citizens of Port Arthur" 444 4th Street X Port Arthur,Texas 77641-1089 X 409.983.8182 X FAX 409.983.8294 S:\Engineering\PUBLIC WORKS\PW-ENGINEERING\C.I.P.PROJECTS\Year 2023\DRAINAGE PROJECTS\Port Acres\Land Acquisition\Agenda Memo Land Acouisition.doa PR No.23977 12/11/2024 mje Page 1 of 3 RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO PURCHASE APPROXIMATELY 1.066 ACRE PORTION OF LAND, MORE OR LESS, LOCATED NEAR 2950 W. HIGHWAY 365, FROM 2950PARV HOLDINGS, LLC, OF AUSTIN, TEXAS, FOR THE ESTIMATED FAIR MARKET VALUE AMOUNT NOT TO EXCEED $26,575.00, TO BE USED AS PART OF THE PORT ACRES DRAINAGE IMPROVEMENT PROJECT. FUNDING AVAILABLE IN DRAINAGE SYSTEM ACCOUNT NO. 307-21-055-8515-00-10-000. PROJECT NO. DR1P03A. WHEREAS, pursuant to Resolution No. 18-231, the City of Port Arthur (City) adopted the 2018 Disaster Recovery and Resiliency Plan (DRRP) for recovery activities following Hurricane Harvey; and, WHEREAS, a master drainage plan was developed to address the significant flooding, flash floods, and drainage issues affecting the community of Port Acres, (i.e., Port Acres Drainage Improvement Project); and, WHEREAS, 2950PARV Holdings, LLC, of Austin, Texas is the fee simple owner of an approximately 1.066 acre portion of land, more or less, located at 2950 W. Highway 365, Port Arthur, Texas, as depicted in Exhibit A, which is necessary for acquisition by the City for use as part of the Port Acres Drainage Improvement Project; and, WHEREAS, on June 2, 2024, the City Council approved a motion to proceed with the land acquisition for the drainage project, with the final purchase approval to be granted by the City Council; and, WHEREAS, an appraisal report has been obtained to determine the fair market value of the property as delineated in the attached Exhibit B; and, I PR No.23977 12/11/2024 mje Page 2 of 3 WHEREAS, it is deemed in the best interest of the City Council to authorize the City Manager and City Attorney to proceed with the land acquisition and finalize the purchase; now therefore, BE RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the City Council hereby authorizes the City Manager and City Attorney to purchase the approximate 1.066 acre portion of land, more or less, from 2950PARV Holdings, LLC, contingent upon clear title, for the estimated fair market value amount not to exceed of $26,575.00, plus closing costs. Section 3. That the City Manager and the City Attorney shall be authorized to execute the necessary closing documents as it relates to the purchase. Section 4. That a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED this the day of 2025, A.D. at a meeting of the City of Port Arthur, Texas by the following vote: Ayes: Mayor: Councilmembers: Noes: Thurman Bill Bartie Mayor PR No. 23977 12/11/2024 mje Page 3 of 3 ATTEST: Sherri Bellard City Secretary APPROVED AS TO FORM: APPROVED FOR ADMINISTRATION: *1°' ii\APrr- Roxann Pais Cotroneo, Esq. Ron Burton, CP r- City Attorney City Mana. . APPROVED AS FOR AVAILABILITY OF FUNDS: LViyytej6Q t.tiil -743 -7) Lyn a "Lyn" Boswell, MA, ICMA-CM Director of Finance John Cannatella, PE Director of Public Works %.4.446, i J Clifton illiams, CPPB Purchasing Manager EXHIBIT A LABELLE ROAD N HIGHWAY 93 4"X4"CONCRETE FOUND 112"IRON ROD MONUMENT A F.M.365 • r FOUND 3/4"IRON ROD PROJECT SITE 4"X4"CONCRETE 0 200 400 VICINITY MAP MONUMENT MI Feet NOT TO SCALE SET 518"IRON ROD WITH CAP STAMPED "LJA SURVEYING INC." FROM WHICH A 112" IRON ROD BEARS S03°31'25"E 4.27' F.M.365 N86°32'16"E (120'WIDE PUBLIC R.O.W.) 17190, 2835.68' ,i S86°30'16"W S86°32'16"W 5207.78' 9130.05' 46,4'2.1 Sq. Feet L2 L3 67 0' c' L4 FOUND 4"X 4" P.O.B. 1.066 Acres 62_999' Temporary Workspace CONCRETE FOUND 3(4" N: 13,914,101.86 MONUMENT IRON ROD 16.89' 16,176.95 Sq. Feet E.3,540,109.24 14760' PARV LLC 0.37 Acres JEFFERSON COUNTY w CALLED 19.16 ACRES DRAINAGE DISTRICT NO.7 cov #. , ; `' CLERK'S FILE NO.2019010906 TRACT 194 "-• D.R.J.C. VOLUME 1531,PAGE 426 "'- , s`- 0, N. \ \ FILED:APRIL 3,2019 D.R.J.C. FILED JANUARY 4, 1968 �w •SNIV-4N t' .\:' ; a ' -' P.O.C. _ '' •FOUND 2" T. BST O. SU:WE N li DISC MONUMENT , v ti '-ry n LINE TABLE LINE BEARING DISTANCE General Notes: L1 N 03°31'25"W 110.01' 1. BASIS OF BEARINGS - ALL BEARINGS ARE BASED UPON THE L2 N 86°32'16"E 687.71' TEXAS COORDINATE SYSTEM OF 1983, SOUTH CENTRAL ZONE L3 S 03°27'44"E 25.00' '4204' (US SURVEY FOOT), ARE IN SURFACE AND MAY BE L4 S 79°29'25"W 692.83' CONVERTED TO GRID BY DIVIDING BY A COMBINED ADJUSTMENT FACTOR OF 1.00007. 2. NOTHING IN THIS SURVEY IS INTENDED TO EXPRESS AN OPINION REGARDING OWNERSHIP OF TITLE TO ANY PROPERTY. LEGEND&ABBREVIATIONS SURVEYOR'S CERTIFICATION D.R.J.C. DEED RECORDS OF JEFFERSON COUNTY O.P.R.J.C. OFFICIAL PUBLIC RECORDS OF THE UNDERSIGNED DOES HEREBY CERTIFY THAT THIS SURVEY JEFFERSON COUNTY PLAT ACCURATELY REPRESENTS AN ON THE GROUND SURVEY O SE• SET UND/8 5/8 CORNER "IRON ROD WITH CAP STAMPED MADE UNDER MY DIRECT SUPERVISION ON JUNE 4,2024,AND IS "LJA SURVEYORS INC." BEING SUBMITTED ALONG WITH THE SURVEYOR'S FIELD NOTE DESCRIPTION OF THE PROPERTY SHOWN HEREON,WHICH LIES IN JEFFERSON COUNTY,TEXAS. LJA SURVEYING, INC 2615 Calder Ave, Suite 500 Tel: 409.833.3363 Beaumont,Texas 77702 Fax: 409.833.0317 TBPELS Firm No 10194382 PARCEL PLAT SHOWING Exhibit for review use only PARCEL 1 JEFFERSON COUNTY,TEXAS REV:A DATE: JULY 18,2024 REGISTERED PROFESSIONAL LAND SURVEYOR F.M.365 J'\yeorors\SUrvey\Yro)ecrs\LJAS4N4)UU/)\14U3(Pignway 3bo NOW ALGUIsluonnuo LAU\Worxrng,feOLJAS4`J4-LaU3_I'HKV .(AI,I_I,tVIStU WIrfl I WS.uWg I,16/LUL4 EXHIBIT B (©)JLL I:� Valuation Advisory Client: DE Corp. Property Address: 2950 FM 365, Port Arthur,Texas, 77640 Report Date: 3/27/2024 J11 File#: VA-23-248888 Parcel 255857, FM 365 Parcel 255857, FM 365 in the vicinity of Rodair Gully ) ..,.-11*'' a. - i,a �1 s s . .F 4 e '• i ,t \• si, 4:" r 2950 FM 365 Port Arthur,Texas,77640 Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 1 0 JLL 4200 Westheimer Road,Suite 1400 Phone:713.423.3300 Houston,Texas 77027 3/27/2024 Re:Appraisal Jared B. Erickson,P.E., PMP Project Manager DE Corp. 415 Embassy Oaks,Suite 102,San Antonio,Texas 78216 210.249.2280 jared.erickson@decorp.com File Number:JLL#VA-23-248888 Dear Mr. Erickson, At your request,we have prepared an appraisal for the above referenced property,which may be briefly described as follows: Being 19.16 acres of land, part of Lot 11, Block 1, Lot 11, Block 12,and Lot 14, Block 25, Port Acres,City of Port Arthur,recorded in Volume 4, Pages 42-47, Map Records, Jefferson County,Texas. The appraisal is intended to conform with the Uniform Standards of Professional Appraisal Practice(USPAP), the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, and applicable state appraisal regulations. Based on the appraisal described in the accompanying report,subject to the Limiting Conditions and Assumptions, Extraordinary Assumptions and Hypothetical Conditions(if any),the appraiser has made the following value conclusion(s): Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 2 Parcel 255857, FM 365 Valuation Summary Whole Property-Market Value Before Fee Simple Acquisition $479,000 less,Remainder Property-Market Value After Fee Simple Acquisition $452,425 Total Compensation Estimate $26,575 Whole Property-Market Value Before Fee Simple Acquisition Fee Area 19.1600 Acres @ $25,000/Acre $479,000 Total $479,000 Remainder Property -Market Value After Fee Simple Acquisition Fee Area 18.0970 Acres @ $25,000/Acre $452,425 Total $452,425 Compensation Total Compensation Estimate $26,575 Cost to Cure $0 Total $26,575 Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 3 Parcel 255857,FM 365 Extraordinary Assumptions and Hypothetical Conditions In this assignment,we have assumed typical general assumptions and limiting conditions as cited in the addenda of this report.The use of hypothetical conditions derived from public policy and case law does not result in a process that is limited or renders the results no longer credible. In this particular assignment,the following additional special assumptions were made: Extraordinary Assumptions and Hypothetical Conditions The value conclusions are subject to the following extraordinary assumptions that may affect the assignment results.An extraordinary assumption is uncertain information accepted as fact. If the assumption is found to be false as of the effective date of the appraisal,we reserve the right to modify our value conclusions. 1.According to the Railroad Commission GIS Viewer,the two pipelines are abandoned on the Subject Property.The Extraordinary Assumption has been made that this is accurate. 2.The apprasiers were not provided an official survey of the the proposed acquisition with metes and bounds measurements.The information and maps provided by the client indicate that the new right of way will be very close to the pad along the northwest corner.However, the exact distance is ambigous.Further,the appraisers were not provided construction schematics of the new facility.Based on the information provided by the client and contained in this report,the Extraordinary Assumption is made that none of the pads will suffer diminished functionality as a result of the acquisition. The value conclusions are based on the following hypothetical conditions that may affect the assignment results.A hypothetical condition is a condition contrary to a fact known by the appraiser on the effective date of the appraisal but is supposed for the purpose of analysis, relating to a specific assignment. 1.The appraisal of the remainder property assumes that the proposed public or private improvements are in place as of the date of valuation. If you have any questions or comments, please contact the undersigned.Thank you for the opportunity to be of service. Respectfully submitted, JLL Valuation&Advisory Services, LLC W.Cameron Boone, IV, MAI,R/W-AC Executive Director Certified General Real Estate Appraiser TX Certificate#:TX 1338682 G Telephone:713.243.3379 Email:cameron.boone@jll.com Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 4 Parcel 255857,FM 365 Contents Valuation Summary 3 Extraordinary Assumptions and Hypothetical Conditions 4 Salient Facts 7 General Information 8 Ownership and Transaction History 9 Scope of Work 12 Approaches to Value 14 Extraordinary Assumptions and Hypothetical Conditions 15 Personal Property and Trade Fixtures 16 Photographs of Subject Property 17 Beaumont MSA Area Demographics 22 Whole Property Analysis 35 Land Analysis 35 Zoning 38 Other Land Use Regulations 38 Conclusion of Land Analysis 41 Improvements Description and Analysis 41 Real Estate Taxes 42 Whole Property Valuation Summary 43 Whole Property Valuation 44 Highest and Best Use 44 Larger Parcel Analysis 46 Valuation Methodology 47 Land Valuation-Whole Property 48 Sales Comparison Approach (Land Only) 49 Final Reconciliation-Whole Property 58 Part to Be Acquired 59 Property Description-Part to Be Acquired 59 Aerial Overlay-Part to Be Acquired 60 Survey Exhibit- Part to Be Acquired 61 Highest and Best Use- Part to be Acquired 62 Summary- Part to be Acquired 63 Remainder Property Valuation Summary 64 Remainder Analysis 65 Highest and Best Use- Remainder After 65 Sales Comparison Approach (Land Only) 66 Conclusion of Value- Remainder After 67 Compensation Summary 68 Certification 69 Limiting Conditions and Assumptions 71 Definitions 79 Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 5 Parcel 255857, FM 365 Appendices A. Appraiser Qualifications B. Definitions C. Project Information D. Subject Information Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 6 Parcel 255857, FM 365 Salient Facts Summary of Salient Facts +/-19.1600 Acres,or 834,610 Square Feet of Land 2950 FM 365,Port Arthur,Jefferson County,Texas Latitude,Longitude Coordinates 29.912865,-94.036771 Legal Description Being 19.16 acres of land,part of Lot 11,Block 1,Lot 11,Block 12,and Lot 14,Block 25,Port Acres,City of Port Arthur,recorded in Volume 4, Pages 42-27,Map Records,Jefferson County,Texas. Zoning Designation PD Property Tax Number(s) 255857 Owner of Record 2920 PARV Holdings,LLC Land Area Approximately 19.1600 acres or 834,610 square feet. Improvements N/A Floodplain Designation AH,100%within the 100 year floodplain. Highest and Best Use As Vacant Commercial use Highest and Best Use As Improved N/A Property Rights Appraised Fee simple estate,subject to existing easements,encumbrances and restrictions Effective Date September 26,2023 Report Date March 27,2024 Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 7 Parcel 255857, FM 365 General Information Identification of Subject and Project The Subject Property is identified by the client as Parcel 255857,which is a portion of a parent tract,or the "Whole Property,"with the following identifying characteristics: Subject Identification and Legal Description +/-19.1600 Acres,or 834,610 Square Feet of Land 2950 FM 365,Port Arthur,Jefferson County,Texas. Latitude,Longitude Coordinates: 29.912865,-94.036771 Legal Description:Being 19.16 acres of land,part of Lot 11,Block 1,Lot 11,Block 12,and Lot 14,Block 25, Port Acres,City of Port Arthur,recorded in Volume 4,Pages 42-27,Map Records,Jefferson County,Texas. The whole property is a 19.1600-acre,or 834,610-square foot commercial use site currently operating as an RV park.The client has proposed to acquire a portion of Parcel 255857,which is itemized in the following table: Subject Land Areas Whole Property Square Feet Acres Fee Area 834,610 19.1600 Total Whole Property 834,610 19.1600 Part Acquired Square Feet Acres 255857 46,304 1.0630 Total Part Acquired 46,304 1.0630 Remainder Property Square Feet Acres Fee Area 788,306 18.0970 Total Remainder Property 788,306 18.0970 The proposed acquisition of fee rights known as Parcel 255857 will facilitate future improvements to W FM 365 in the vicinity of Rodair Gully.As of the effective date of value,September 26,2023,the Subject Property is valued as effectively vacant land with no site improvements. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 8 Parcel 255857,FM 365 Ownership and Transaction History The Uniform Standards of Professional Appraisal Practice(USPAP) requires full disclosure of any sales or property transfers within the previous three years of the date of value.This information is summarized as follows: The owner of record is 2920 PARV Holdings,LLC.This party acquired the property from PARV, LLC by special warranty deed on October 25,2023,for an undisclosed price,as recorded in document 2023030337.The property was acquired by PARV,LLC from Port Arthur RV Park Holdings LP by special warranty deed on April 1, 2019,for an undisclosed price,as recorded in document 2019010906.To the best of our knowledge, no other sale or transfer of ownership has occurred within the past five years.The appraisers completed an initial appraisal of the Subject on October 24,2023. It was learned after the appraisal was completed that it had recently sold. Hence,the appraisers sent a letter in February 2024 to inform the new property owner about the project. Inspection letters were sent to both the former and the new owners of the Subject Property. The property was not known to be subject to an agreement of sale or option to buy and was not listed for sale as of the effective date of value. Inspection The appraiser sent a certified letter(contained in the Addenda)to the landowner requesting permission to inspect the property on February 27,2023.As of March 12,2024,we have not heard a response from the landowner.An inspection of the property was made on September 26,2023.The appraiser was not accompanied at the time of inspection;as such,an inspection of the property was conducted from the existing right-of-way. Purpose of the Appraisal The purpose of the appraisal is to develop an opinion of real property compensation due to the property owner,which includes the market value of the part to be acquired, plus any applicable damages to the remainder property,as of the effective date of the appraisal,September 26,2023. Market value is based upon analysis of the underlying fee simple interest in the property.The appraisal is valid only as of the stated effective date or dates. Appraisal Report Option Based on the intended users understanding of the subject's physical,economic and legal characteristics,and the intended use of this appraisal,an appraisal report format was used,as defined below. Appraisal Report This is an Appraisal Report as defined by Uniform Standards of Professional Appraisal Practice under Standards Rule 2-2(a).This format provides a summary or description of the appraisal process,subject and market data and valuation analyses. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 9 Parcel 255857, FM 365 Definitions Market Value is defined by City of Austin v.Cannizzo,267 S.W.2d 808(Tex 1954) as being: "The price the property would bring when offered for sale by one who desires to sell, but is not obliged to sell, and is bought by one who desires to buy, but is under no necessity of buying,taking into consideration all of the uses to which it is reasonably adaptable and for which it either is,or in all reasonable probability,will become available within the reasonable future." Intended Use, and User(s) Intended Use: The intended use of this appraisal is for a proposed right-of-way acquisition. Intended User(s): The intended user(s)of the appraisal is DE Corp.,Jefferson County DD7,and the U.S.Army Corps of Engineers,Galveston District.The appraisal is not intended for any other use or user.No party or parties other than DE Corp., Jefferson County DD7,and the U.S.Army Corps of Engineers,Galveston District may use or rely on the information,opinions,and conclusions contained in this report. This report must be used in its entirety. Reliance on any portion of the report independent of others,may lead the reader to erroneous conclusions regarding the property values. Unless approval is provided by the authors,no portion of the report stands alone. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 10 Parcel 255857,FM 365 Applicable Requirements This appraisal is intended to conform to the requirements established in the Uniform Standards of Professional Appraisal Practice(USPAP-2024) in addition to the following: • This report is prepared under the Appraisal Report option of Standards Rule 2-2(a)of USPAP. • Code of Professional Ethics of the Appraisal Institute;and Standards of Professional Appraisal Practice (USPAP) of the ASB/Appraisal Foundation Prior Services USPAP requires appraisers to disclose to the client any other services they have provided in connection with the subject property in the prior three years, including valuation,consulting,property management, brokerage,or any other services.We have performed no other services,as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding the agreement to perform this assignment. Significant Appraisal Assistance It is acknowledged that Chase A.Gonzales made a significant professional contribution to this appraisal, consisting of participating in conducting research on the subject and transactions involving comparable properties,performing appraisal analyses,and assisting in report writing, under the supervision of the persons signing the report. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 11 Parcel 255857, FM 365 Scope of Work Scope of work is the type and extent of research and analyses involved in an assignment.To determine the appropriate scope of work for the assignment,we considered the intended use of the appraisal,the needs of the user,the relevant characteristics of the subject property,and other pertinent factors.Our concluded scope of work is summarized below,and in some instances,additional scope details are included in the appropriate sections of the report. We understand the Competency Rule of USPAP that discusses the need for the appraiser to have the proper knowledge and experience to complete the assignment competently.As the appraiser and the author of this report,I have experience both in the market area and in appraising similar type properties. No additional steps were necessary or required to comply with this rule. Research and Analysis The type and extent of our research and analysis is detailed in individual sections of the report. In general,the following steps were taken to perform this assignment: • The appraiser sent a certified letter(contained in the Addenda)to the landowner requesting permission to inspect the property.The letter was not returned.The appraiser physically inspected the subject property and the surrounding market area.The inspection of the property is limited to those things readily observable without the use of special testing or equipment.Subject information may be sourced from the property owner's representative,public records,and/or third-party sources. • Regional economic and demographic trends,as well as the specifics of the subject's local area were investigated. Data on the local and regional property market(supply and demand trends,rent levels, etc.)was also obtained.This process was based on interviews with regional and/or local market participants, primary research,available published data,and other various resources. • Other relevant data was collected,verified,and analyzed.Comparable property data was obtained from various sources(public records,third-party data-reporting services,etc.) and confirmed with a party to the transaction (buyer,seller, broker,owner,tenant,etc.)wherever possible. It is,however, sometimes necessary to rely on other sources deemed reliable,such as data reporting services. • Based upon the subject property characteristics, prevailing market dynamics,and other information, we developed an opinion of the property's Highest and Best Use. • We analyzed the data gathered using generally accepted appraisal methodology to arrive at a value indication via each applicable approach to value. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 12 a Parcel 255857, FM 365 o The Subject Property is valued as vacant land with no site improvements.As a result of the project,the property is anticipated to suffer no damages.The appraisers were not provided an official survey of the proposed acquisition with metes and bounds measurements.The information and maps provided by the client indicate that the new right of way will be very close to the pad along the northwest corner. However,the exact distance is ambiguous. Further,the appraisers were not provided construction schematics of the new facility. Based on the information provided by the client and contained in this report,the Extraordinary Assumption is made that none of the pads will suffer diminished functionality as a result of the acquisition.Additionally,the appraisers have made the Extraordinary Assumption that the Railroad Commission designation of the respective pipelines being abandoned is accurate. o Because of the numerous mathematical calculations that are inherent for partial acquisition valuations,very little rounding of interim value calculations are made in this report.Although unrounded value estimates are required to prevent rounding errors,value opinions contained in this report are not intended to be exact,but opinions of approximate value only. • Performed a highest and best use analysis on the Remainder After with consideration to the impact on the residual property as a result of the proposed acquisition.The appraisal of a remainder property is performed as though the proposed public or private improvements are complete as of the effective date of valuation. • Derived an estimate of the total compensation due to the owner of the property as the result of a proposed acquisition by summation of the part to be acquired and any damages.The damages were calculated based on the difference in the value opinion for the remainder before and remainder after. • Prepared an appraisal report summarizing our analyses,opinions and conclusions. Other elements of the scope of work undertaken to perform this assignment are outlined throughout the narrative of the report. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 13 Parcel 255857,FM 365 Approaches to Value Appraisers usually consider the use of three approaches to value when developing a market value opinion for real property.These are the cost approach,sales comparison approach,and income capitalization approach. Applicability and utilization of the approaches in this assignment is described as follows. • A cost approach is most applicable in valuing new or proposed construction when the improvements represent the highest and best use of the land and the land value,cost new and depreciation are well supported.The cost approach is also utilized to allocate value among the land and various improvements. • A sales approach is most applicable when sufficient data on recent market transactions is available and there is an active market for the property type. • An income approach is most applicable when the subject is an income producing property or has the ability to generate income in the future as an investment. Analysis Applied Valuation Approaches Whole Property Applicability Land Sales Comparison Approach Yes Utilized Cost Approach No Not Applicable Sales Comparison Approach As Improved No Not Applicable Income Approach As Improved No Not Applicable Valuation Approaches Remainder After Applicability Land Sales Comparison Approach Yes Utilized Cost Approach No Not Applicable Sales Comparison Approach As Improved No Not Applicable Income Approach As Improved No Not Applicable The Subject is a RV Park is comprised of 136 variously sized pad sites(Back-In,Premium Back-In, Pull-Thru, ADA Pull-Thru,and Premium Pull-Through) ranging in price from$654-$724 monthly. Amenities at Port Arthur RV Resort include a community center,fitness center,laundry facility,lounge area,showers&restrooms,and playgrounds/pool.As the proposed acquisition consists of land only,and no improvements will suffer diminished functionality as a result of the acquisition,the Subject Property has been appraised as vacant land with no known site improvements.The Cost Approach,Sales Comparison Approach,and Income Approach are not applicable. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 14 Parcel 255857,FM 365 Extraordinary Assumptions and Hypothetical Conditions In this assignment,we have assumed typical general assumptions and limiting conditions as cited in the addenda of this report.The use of hypothetical conditions derived from public policy and case law does not result in a process that is limited or renders the results no longer credible. In this particular assignment,the following additional special assumptions were made: Extraordinary Assumptions and Hypothetical Conditions The value conclusions are subject to the following extraordinary assumptions that may affect the assignment results.An extraordinary assumption is uncertain information accepted as fact. If the assumption is found to be false as of the effective date of the appraisal,we reserve the right to modify our value conclusions. 1.According to the Railroad Commission GIS Viewer,the two pipelines are abandoned on the Subject Property.The Extraordinary Assumption has been made that this is accurate. 2.The apprasiers were not provided an official survey of the the proposed acquisition with metes and bounds measurements.The information and maps provided by the client indicate that the new right of way will be very close to the pad along the northwest corner.However, the exact distance is ambigous.Further,the appraisers were not provided construction schematics of the new facility.Based on the information provided by the client and contained in this report,the Extraordinary Assumption is made that none of the pads will suffer diminished functionality as a result of the acquisition. The value conclusions are based on the following hypothetical conditions that may affect the assignment results.A hypothetical condition is a condition contrary to a fact known by the appraiser on the effective date of the appraisal but is supposed for the purpose of analysis, relating to a specific assignment. 1.The appraisal of the remainder property assumes that the proposed public or private improvements are in place as of the date of valuation. Jurisdictional Exceptions The Jurisdictional Exception Rule allows"an assignment condition established by applicable law or regulation,which precludes an appraiser from complying with a part of USPAP.1"This includes federal and state constitutions,legislative and court made law,administrative rules,regulations and ordinances. In this assignment,there are no known conflicts of law or public policy that disregard a part of USPAP. Uniform Standards of Professional Appraisal Practice,2020-2022 Ed.,"Jurisdictional Exception."Washington,D.C.:The Appraisal Foundation,2020. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 15 Parcel 255857,FM 365 Personal Property and Trade Fixtures The estimate of compensation in this report is for real property interest,or real estate which includes the physical land and improvements attached to the land.This report does not include a value estimate for personal property or trade fixtures unless represented otherwise in this report.According to the Code of Federal Regulations(CFR), Title 49- Transportation,Section 24.103(a)(1), "The appraisal report should identify the items considered in the appraisal to be real property,as well as those identified as personal property". The real property or real estate is described in other sections of this report,or the Description and Analysis of the Land and in the Description and Analysis of the Improvements. No items of personal property were identified during the appraiser's inspection. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 16 Parcel 255857, FM 365 Photographs of Subject Property Parcel: Parcel 255857 Local Address: 2950 FM 365,Port Arthur,Texas Date Taken: September 26,2023 Taken By: W.Cameron Boone,IV,MAI,R/W-AC <� a • - ,. _ Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 17 Parcel 255857, FM 365 Parcel: Parcel 255857 Local Address: 2950 FM 365,Port Arthur,Texas Date Taken: September 26,2023 Taken By: W.Cameron Boone,IV,MAI,R/W-AC 1,9 gni aver, Ea x ? ° uK9i'i: � 4+hnAmpoiNg a r Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 18 Parcel 255857,FM 365 Parcel: Parcel 255857 Local Address: 2950 FM 365,Port Arthur,Texas Date Taken: September 26,2023 Taken By: W.Cameron Boone,IV,MAI,R/W-AC • Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 19 1 Parcel 255857, FM 365 Parcel: Parcel 255857 Local Address: 2950 FM 365,Port Arthur,Texas Date Taken: September 26,2023 Taken By: W.Cameron Boone,IV,MAI,R/W-AC I Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 20 Parcel 255857, FM 365 Parcel: Parcel 255857 Local Address: 2950 FM 365,Port Arthur,Texas Date Taken: September 26,2023 Taken By: W.Cameron Boone,IV,MAI,R/W-AC 1 0 1 l ,. x. � K per.. -a_ ' Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 21 Parcel 255857,FM 365 Beaumont MSA Area Demographics The subject is located in the Beaumont-Port Arthur,TX Metropolitan Statistical Area,hereinafter called the Beaumont MSA,as defined by the U.S.Office of Management and Budget.The Beaumont MSA is 2,102 square miles in size and ranks#139 in population out of the nation's 382 metropolitan areas. Population The Beaumont MSA has an estimated 2023 population of 399,460,which represents an average annual 0.2% increase over the 2020 census amount of 397,565. Beaumont MSA added an average of 632 residents per year over the 2020-2023 period,and its annual growth rate is less than that of the State of Texas. Population Trends Population Compound Ann.%Chng Area 2010 Census 2020 Census 2023 Est. 2028 Est. 2020-2023 2023-2028 1 mi. radius 1,067 1,045 1,050 1,063 0.2% 0.2% 3 mi.radius 6,129 7,097 7,634 7,848 2.5% 0.6% 5 mi.radius 35,650 39,994 40,925 40,992 0.8% 0.00/0 Beaumont MSA 388,745 397,565 399,460 398,617 0.2% 0.0% Texas 25,145,561 29,145,505 30,506,523 32,021,944 1.5% 1.0% United States 308,745,538 331,449,281 337,470,185 342,640,129 0.6% 0.3% Source:Esri 2023.Compiled by JLL Valuation&Advisory Services,LLC. Looking forward,the Beaumont MSA's population will remain essentially the same from 2023-2028 without any appreciable growth or decline.The Beaumont MSA growth rate is expected to lag that of Texas,which is projected to be 1.0%. Employment The current estimate of total employment in the Beaumont MSA is 158,067 jobs.Since 2013,employment declined by 1,983 jobs,equivalent to a 1.2%loss over the entire period.There were gains in employment in nine of the past ten years despite the national economic downturn and slow recovery. The Beaumont MSA's rate of change in employment significantly underperformed the State of Texas,which experienced an increase in employment of 19.7%or 2,213,833 over this period. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 22 Parcel 255857, FM 365 Employment Trer Total Employment(Annual Average) Unemployment Rate(Ann. Beaumont Beaumont United Year MSA Change Texas Change United States Change MSA Texas States 2008 167,833 - 10,644,758 - 137,223,667 - 6.4% 4.9% 5.8% 2009 161,542 -3.7% 10,343,783 -2.8% 131,295,833 -4.3% 9.5% 7.5% 9.3% 2010 160,117 -0.9% 10,377,867 0.3% 130,344,500 -0.7% 11.3% 8.2% 9.6% 2011 162,850 1.7% 10,608,450 2.2% 131,914,333 1.2% 11.6% 8.0% 9.0% 2012 162,092 -0.5% 10,917,892 2.9% 134,157,333 1.7% 10.5% 6.7% 8.1% 2013 160,050 -1.3% 11,244,733 3.0% 136,363,250 1.6% 10.5% 6.3% 7.4% 2014 164,650 2.9% 11,597,317 3.1% 138,939,250 1.9% 8.1% 5.2% 6.2% 2015 166,100 0.9% 11,869,775 2.3% 141,824,250 2.1% 6.8% 4.5% 5.3% 2016 164,117 -1.2% 12,017,625 1.2% 144,335,333 1.8% 6.9% 4.6% 4.9% 2017 162,817 -0.8% 12,232,167 1.8% 146,606,917 1.6% 7.2% 4.4% 4.4% 2018 164,075 0.8% 12,523,258 2.4% 148,908,333 1.6% 6.1% 3.9% 3.9% 2019 164,958 0.5% 12,813,592 2.3% 150,904,333 1.3% 5.5% 3.5% 3.7% 2020 153,708 -6.8% 12,275,517 -4.2% 142,185,833 -5.8% 11.3% 7.7% 8.1% 2021 151,758 -1.3% 12,722,767 3.6% 146,284,500 2.9% 9.3% 5.6% 5.4% 2022 158,067 4.2% 13,458,567 5.8% 152,575,167 4.3% 6.0% 3.9% 3.7% 10 Yr Change -1,983 -1.2% 2,213,833 19.7% 16,211,917 11.9% Avg Unemp. Rate 2013-2022 7.7% 5.0% 5.3% Unemployment Rate-Aug 2023 6.7% 4.5% 3.9% Source:Bureau of Labor Statistics.County employment is from the Quarterly Census of Employment&Wages(QCEW),all other areas use the Current Employment Survey(CES).Unemployment rates use the Current Population Survey(CPS).Data is not seasonally adjusted. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 23 Parcel 255857,FM 365 Employment/ Unemployment Historical Trends 180 14.0% 160 12.0% 140 0 120 10.0% INo r 80 '..,-. cu 60 40 n<- ym , '.,, 4.0% 20 0 2.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Beaumont MSA Emp. Texas Emp. Beau mont M SA Unemp. Texas Unemp. •"""'"'"US Unemp. Source:Bureau of Labor Statistics.County employment is from the Quarterly Census of Employment&Wages(QCEW),all other areas use the Current Employment Survey(CES).Unemployment rates use the Current Population Survey(CPS).Data is not seasonally adjusted. Copyright©Jones Lang LaSalle IP,Inc.2024.AU Rights Reserved. 24 Parcel 255857,FM 365 Employment% Growth Year-Over-Year 8.0% 6.0% 4.0% f2022 E 0.0% 201'. 2009 2' 0 2011 201 0 2014 015 7 2018 2D1: 2020` 11111111111r111111' EE -8.0% Beaumont MSA Emp. Texas Emp. US Emp. Source:Bureau of Labor Statistics.County employment is from the Quarterly Census of Employment&Wages(QCEW),all other areas use the Current Employment Survey(CES).Unemployment rates usethe Current Population Survey(CPS).Data is not seasonally adjusted. A comparison of unemployment rates is another way of gauging an area's economic health,where a higher unemployment rate is a negative indicator.Over the past decade,the Beaumont MSA unemployment rate of 7.7%has been higher than the Texas rate of 5.0%. In the latter half of the decade that trend has continued,as the Beaumont MSA has consistently underperformed Texas. Recent data shows that the Beaumont MSA unemployment rate is 6.7%, in comparison to a 4.5%rate for Texas,a negative sign for the Beaumont MSA economy and one that is exacerbated by the fact that the Beaumont MSA has underperformed Texas in the rate of job growth over the past two years. Employment Sectors The composition of the Beaumont MSA job market is illustrated in the chart below, paired with that of Texas. Total employment for the areas is stratified by eleven major employment sectors,ranked from largest to smallest based on the percentage of Beaumont MSA jobs in each sector. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 25 1 Parcel 255857, FM 365 Employment Sectors - 2023 0% 5% 10% 15% 20% 25% Education,Health Services Trade,Transportation,Utilities Manufacturing Construction Other Services s. Leisure,Hospitality Govemment tl- Professional,Business Services Financial Activities Natural Resources,Mining Information Lim •Beaumont MSA Texas ■United States Source:Esri 2023.Compiled by JLL Va luation&Advisory Services,LLC. The Beaumont MSA has a greater percentage employment than Texas in the following categories: 1. Manufacturing-which accounts for 13.5%of Beaumont MSA payroll employment compared to 8.6%for Texas as a whole.This sector includes all establishments engaged in the manufacturing of durable and nondurable goods. 2. Construction-which accounts for 12.4%of Beaumont MSA payroll employment compared to 8.5%for Texas as a whole.This sector includes construction of buildings,roads,and utility systems. 3. Government-which accounts for 5.1%of Beaumont MSA payroll employment compared to 4.3% for Texas as a whole.This sector includes public administration at the federal,state,and county level,as well as other government positions. The Beaumont MSA is underrepresented in the following categories: 1. Professional, Business Services-which accounts for 4.7%of Beaumont MSA payroll employment compared to 8.4%for Texas as a whole.This sector includes legal,accounting,and engineering firms,as well as management of holding companies. 2. Financial Activities-which accounts for 4.0%of Beaumont MSA payroll employment compared to 7.1%for Texas as a whole. Banking, insurance,and investment firms are included in this sector,as are real estate owners,managers,and brokers. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Resented. 26 Parcel 255857,FM 365 3. Natural Resources,Mining-which accounts for 1.1%of Beaumont MSA payroll employment compared to 2.1%for Texas as a whole.Agriculture,mining,quarrying,and oil and gas extraction are included in this sector. 4. Information-which accounts for 0.8%of Beaumont MSA payroll employment compared to 1.7% for Texas as a whole. Publishing, broadcasting,data processing,telecommunications,and software publishing are included in this sector. Major Employers The table below contains major employers in the Beaumont MSA. Major Employers - Beaumont MSA Employe:.. 1 AT&T 3,003 2 Lamar University 2,546 3 ExxonMobil Corp. 2,189 4 Christus St.Elizabeth Hospital 2,136 5 Texas State Bank 1,900 6 Talon Insurance Agency Ltd. 1,718 7 Westvaco 1,690 8 Memorial Hermann Baptist 1,653 9 Motiva Enterprises LLC 1,500 10 West Teleservices Corp. 1,464 11 Kinsel Ford Inc. 1,135 12 Huntsman Corp. 1,038 13 Signal International 1,000 14 Medical Center of SETX 825 15 Wal-Mart Supercenter 816 16 Valero Refining Group 813 17 Burrow Global Services 785 18 Premcor Refinery 780 19 Conn's 617 20 Entergy 586 Sources(s):City of Beaumont Texas,2017 Gross Domestic Product Based on Gross Domestic Product(GDP),the Beaumont MSA ranks#99 out of all metropolitan area economies in the nation. Economic growth,as measured by annual changes in GDP,has been significantly lower in the Beaumont MSA than Texas overall during the past nine years.The Beaumont MSA has expanded at a 3.3%average annual rate while the State of Texas has grown at a 2.8%rate.As the national economy improves,the Beaumont MSA continues its weak performance relative to Texas.GDP for the Beaumont MSA shrank by 3.2%in 2021 while Texas's grew by 3.9%. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 27 Parcel 255857,FM 365 The Beaumont MSA has a per capita GDP of$53,344,which is 13.0%less than Texas's GDP of$61,151.This means that the Beaumont MSA industries and employers are adding relatively much less to the economy than their peers in Texas. Gross Domestic Product Gross Domestic Product($miO GDP per Capita ($) Beaumont United Beaumont United Year MSA Change Texas Change States Change MSA Texas States 2012 $28,583 - $1,421,180 - $16,254,000 - $73,216 $54,723 $51,902 2013 $28,685 0.4% $1,484,700 4.5% $16,553,300 1.8% $73,323 $56,276 $52,488 2014 $23,579 -17.8% $1,529,620 3.0% $16,932,100 2.3% $60,145 $57,086 $53,315 2015 $23,388 -0.8% $1,605,900 5.0% $17,390,300 2.7% $59,531 $59,024 $54,380 2016 $24,204 3.5% $1,619,950 0.9% $17,680,300 1.7% $61,479 $58,652 $54,907 2017 $25,156 3.9% $1,659,450 2.4% $18,076,700 2.2% $63,765 $59,198 $55,756 2018 $26,055 3.6% $1,728,300 4.1% $18,609,100 2.9% $65,906 $60,760 $57,009 2019 $25,666 -1.5% $1,779,780 3.0% $19,036,100 2.3% $64,787 $61,676 $57,925 2020 $21,933 -14.5% $1,747,560 -1.8% $18,509,100 -2.8% $55,249 $59,706 $55,946 2021 $21,221 -3.2% $1,815,060 3.9% $19,609,800 5.9% $53,344 $61,151 $58,879 10 Yr Change -$7,362 -3.3% $393,880 2.8% $3,355,800 2.1% -$19,872 $6,427 $6,977 Source:Bureau of Economic Analysis.The release of state and local GDP data has a longer lag time than national data.The data represents inflation-adjusted'real'GDP stated in 2012 dollars.Per Capita GDP data are calculated by dividing the area GDP by its estimated population for the year shown. Gross Domestic Product Historical Trends $35,000 $80,000 $30,000 $70,000 $60,000 $50,000 +� g $20,000 a $40$10,,000000 $15,000 a $30,000 o $10,000 $20,000 $5,000 $0 $0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 MIMI Beaumont MSA GDP -Beaumont MSA GDP per Cap. Texas GDP per Cap. US GDP per Cap. Source:Bureau of Labor Statistics.County employment is from the Quarterly Census of Employment&Wages(QCEW),all other areas use the Current Employment Survey(CES).Unemployment rates use the Current Population Survey(CPS).Data is not seasonally adjusted. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 28 Parcel 255857,FM 365 GDP 0 Growth Year-Over-Year 10.0°r° 5.0% 3 0.0°/° p 2012 20 2014 2 15 2016 2017 2018 2* 9 S-. 2021 i w p -5.0% C7 -10.0% -15.0% -20.0% Beaumont MSA GDP Texas GDP USGDP Source:Bureau of Labor Statistics.County employment is from the Quarterly Census of Employment&Wages(QCEW),all other areas usethe Current Employment Survey(CES).Unemployment rates use the Current Population Survey(CPS).Data is not seasonally adjusted. Gross Domestic Product is a measure of economic activity based on the total value of goods and services produced in a specific geographic area.The figures in the table above represent inflation adjusted"real"GDP stated in 2012 dollars. Household Income The Beaumont MSA has a lower level of household income than Texas. Median household income for the Beaumont MSA is$63,400,which is 8.8%less than Texas. Median Household IncomE Med.Household Incom ,Compound Ann.o%o Chng Area 2023 Est. 2028 5 2023-2028 Beaumont MSA $63,400 $73,142 2.9% Texas $69,529 $78,896 2.6% United States $72,603 $82,410 2.6% Source:Esri 2023.Compiled by JLL Valuation&Advisory Services,LLC. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 29 Parcel 255857,FM 365 2023 Median Household Income Area Comparison $58,000 $60,000 $62,000 $64,000 $66,000 $68,000 $70,000 $72,000 $74,000 Beaumont MSA Texas � .: United States Source:Esri 2023.Compiled by JLL Valuation&Advisory Services,LLC. The Beaumont MSA has a greater concentration of households in the lower income levels than Texas. Specifically,28%of the Beaumont MSA households are below the$35,000 level in household income as compared to 24%of Texas households.A smaller concentration of households exists in the higher income levels,as 44%of the Beaumont MSA households are at the$75,000 or greater levels in household income versus 47%of Texas households. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 30 Parcel 255857, FM 365 2023 Median Household Income Distribution 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% $15,000-$24,999 $25,000-$34,9 99 Y $35,000-$49,999 $50,OW-$74,999 ;f $75,000-$99,999 :yam $100,000-$149,999 $150,000-$199,999 .x„-]] $200,000 or greater , •Beaumont MSA = Texas •United States Source:Esri 2023.Compiled by JLL Valuation&Advisory Services,LLC. Education and Age Residents of the Beaumont MSA have a significantly lower level of educational attainment than those in Texas.An estimated 20.9%of the Beaumont MSA residents are college graduates with four-year degrees or higher,while Texas residents have an estimated 34.9%with at least a four-year degree. People in the Beaumont MSA are older than their peers in Texas.The median age of the Beaumont MSA is 39 years,while Texas is 36 years. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 31 Parcel 255857,FM 365 Population % with at least 4-Year Degree Median Age 0% 10% 20% 30% 40% 10 20 30 40 50 1 mi.radius 3 mi.radius 5 mi.radius Beaumont MSA .,*Co-' Texas United States 11111111101.11 Source:Esri 2023.Compiled by JLL Valuation&Advisory Services,LLC. Conclusion The Beaumont MSA's economy will benefit from a stable to slightly growing population base.The employment situation in the Beaumont MSA is facing challenges,as the number of jobs has declined during the past decade,which is exacerbated by the fact that unemployment has been greater than the rate across the balance of the State over the same period. In addition to the employment headwinds,the Beaumont MSA is facing challenges from lagging Texas in both GDP growth in the past nine years and its GDP per capita. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 32 Parcel 255857,FM 365 Surrounding Area Demographics A snapshot of the surrounding area demographics,including population,households,and income data,is displayed in the following table. Surrounding Area Demographics Population 2010 1,067 6,129 35,650 388,745 25,145,561 308,745,538 2020 1,045 7,097 39,994 397,565 29,145,505 331,449,281 2023 1,050 7,634 40,925 399,460 30,506,523 337,470,185 2028 1,063 7,848 40,992 398,617 32,021,944 342,640,129 Compound Chg 2020-2023 0.16% 2.46% 0.77% 0.16% 1.53% 0.60% Compound Chg 2023-2028 0.25% 0.55% 0.03% -0.04% 0.97% 0.30% Density 335 270 521 190 117 96 Households 2010 416 2,434 12,614 144,934 8,922,933 116,716,292 2020 407 2,665 14,170 150,085 10,491,147 126,817,580 2023 407 2,854 14,414 151,565 11,047,066 129,917,449 2028 414 2,948 14,495 152,587 11,696,400 133,099,006 Compound Chg 2020-2023 0.00% 2.31% 0.57% 0.33% 1.74% 0.81% Compound Chg 2023-2028 0.34% 0.65% 0.11% 0.13% 1.15% 0.49% Other Demographics Med. Household Income $50,000 $52,690 $63,380 $63,400 $69,529 $72,603 Avg.Household Size 2.6 2.7 2.4 2.5 2.7 2.5 College Graduate% 12.1% 12.9% 18.3% 20.9% 34.9% 36.1% Median Age 45 45 39 39 36 39 Owner Occupied% 79% 69% 58% 67% 63% 65% Renter Occupied% 21% 31% 42% 33% 37% 35% Med. Home Value $135,000 $162,723 $208,295 $174,730 $255,469 $308,943 Source:Esri 2023.Compiled by JLL Valuation&Advisory Services,LLC. As illustrated above,the current population within a three-mile radius of the subject is 7,634,and the average household size is 2.7. Population in the area has risen relatively rapidly since the 2020 census,and this trend is expected to continue in the ensuing five years. Despite the population growth within a three-mile radius,it is estimated the Beaumont MSA overall will remain steady. Median household income is$52,690,which is considerably lower than the household income for the Beaumont MSA as a whole.The populace within a three-mile radius has less formal college education than residents in the Beaumont MSA,and median home values in the area are also lower. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 33 Parcel 255857,FM 365 Land Use In the immediate vicinity of the Subject Property,predominate land uses include commercial and industrial uses along the arterial roadways,with single-family residential,agricultural and vacant land uses along collector roads. Adjacent Land Uses North Industrial South Vacant Land East Vacant Land/Commercial West Vacant Land Demand Generators Major employers in the area include Exxon,Motiva Enterprises,and Valero.The closest major commercial corridors to the subject are State Highway 73 and U.S. Highway 96,providing average supporting retail and entertainment services. Development activity in the generally stagnant area has been predominantly of residential and industrial uses.In addition,development has been stagnant in the last three years.The subject has accommodating area linkages providing access to job centers and surrounding commercial districts. Access and Linkages State Highway 73 and U.S. Highway 96 provide access to the subject from the greater Golden Triangle metro area (Beaumont, Port Arthur,Orange).Other major local routes in the immediate area are FM 365, Port Arthur Road,and State Highway 87.The subject has a walk score of 66 indicating an average walkability factor.The subject is most commonly accessed via car.The nearest commercial airport is Jack Brooks Regional Airport and is located within 3 miles of the Subject Property. The following table presents a summary of the convenience of walking and biking to amenities in the neighborhood around the subject property. Walk and Bike Information Metric Rating(0-100) Description Walk Score 66 Somewhat Walkable Bike Score 46 Somewhat Bikeable Source:Walkscore.com,updated 08/14/2023.Compiled by JLL Valuation&Advisory Services,LLC. Outlook and Conclusion The subject's area has experienced modest growth and construction activity contributing to our conclusion that the subject's area is in the stability stage of its life cycle. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 34 Parcel 255857, FM 365 Whole Property Analysis Land Analysis A survey indicating the size of the Whole Property,partial acquisition and remainder was provided by the client.These size estimates are assumed to be accurate for purposes of this assignment.The whole property includes the following land areas: Subject Land Areas Whole Property Square Feet Acres Fee Area 834,610 19.1600 Total Whole Property 834,610 19.1600 The information below also pertains to the Subject Property: Land Description&Physical Features Whole Land Area(gross) 19.1600 acres;834,610 SF Source of Land Area Deed Records Primary Street Frontage Street W FM 365 Frontage Feet(approx.) 932.40 Paving Asphalt Curbs None Sidewalks None Lanes Two(one each way) Direction of Traffic East/West Signals/Traffic Control None Access/Curb Cuts One Driveway Visibility Average(Example only) Shape Irregular Corner No Topography Generally Level at street grade Drainage No problems reported or observed Environmental Hazards No problems reported or observed Ground Stability No problems reported or observed Flood Area Panel Number 4854990025E Date April 17,1984 Zone AH Description 19.1600 acres,or 100%within 100-year floodplain Insurance Required? Yes(for flood prone areas) Utilities All available to site Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 35 Parcel 255857, FM 365 Flood Map Prepared for JLL Valuation&Advisory Services InterFlood I ,.,,; ; W Farm to Market Rd 365 x. -•L. �. —(7, . . ,/ 6.111 St--- . Anne St.. ,... • i , 300yardsc Googie Powered of C,retogert MAP DATA MAP LEGEND FEMA Special Flood Hazard Area Yes Areas inundated by 500-year flooding En Protected Areas Map Number 4854990025E Zone AN El Areas inundated by 100-year flooding a Floodway Map Date April 17.1984 n Velocity Hazard n Subject Area FIPS 48245 Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 36 Parcel 255857,FM 365 Tax Map ' - .397918' os Y!{k r d 'I gr OD E rr a # 85422 A, 14 a9 SO 361262 v94>Mil 246369 36126 86767 86766 : ,% 4 94: Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 37 Parcel 255857, FM 365 Zoning The subject is located in a municipality that has zoning ordinances. Specific zoning requirements are summarized in the following table. Zoning Summary Zoning Jurisdiction City of Port Arthur Zoning Designation PD Description Planned Development District Legally Conforming? Appears to be legally conforming Permitted Uses The purpose of the PD,Planned Development District is to provide greater flexibility and opportunity for innovation in projects. Future Land Use Category C,Commercial District Other Land Use Regulations A Planned Development shall contain at least one base zoning district to regulate all uses and development regulations not modified by the Planned Development ordinance. Minimum Lot Area 10,000 SF Minimum Lot Width (Feet) 100 Minimum Lot Depth (Feet) 100 Minimum Setbacks(Feet) Front:20 ft./Side:5 ft./Rear:10 ft. Maximum Building Height 3 Stories Maximum Lot Coverage 60% Source: City of Port Arthur Zoning Ordinance A determination of compliance with all zoning regulations would require an extensive evaluation of existing conditions and a thorough knowledge of all aspects of the city ordinances,as well as fire,electrical,plumbing and safety codes that are usually incorporated by reference into most cities'ordinances. Local municipalities have no process available to investigate and render a judgment regarding full compliance with all applicable standards for existing properties.The appraiser is not in a capacity to give an opinion about the property's overall compliance with zoning regulations as of the effective date.As no issues of nonconformity are readily apparent to the appraiser,it is assumed the subject meets current zoning regulation. It appears that the current use of the site is a legally conforming use that pre-dates the current zoning regulations.The Subject Property will be zoned for commercial use in the future according to the City of Port Arthur Comprehensive Plan.This change in zoning will not impact the property as it will remain legally conforming. Other Land Use Regulations We are not aware of any land use regulations other than zoning that would affect the property,nor are we aware of any moratoria on development. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 38 Parcel 255857, FM 365 Zoning Map PA Zoning2023 Official C CR-Commercial Retail District a ;e MDR,Medium Density Residential District LI Subject HDR,High Density Residential District r-,. 365; LDR,Lave Density Residential District NS,Neighborhood Services District HI,Heavy Industrial District CR PD CG,Commercial General District LI,Light Industrial District MH MH,Manufactured Home District p A,Agricultural District n Other Future Land Use Map j /46 'lip y i 1\x, gfr . / . j: f,' Subject if /I +"�� fl , �� NN 1*7 i 41 .› :,'S — Note- A comprehensive plan shah nut constitute zoning district regulations �/ or establish zoning district boundaries. N °-g0 1 Miles gar A IF all NICHOLS ©Revitalization Plan t Public/Semi-Public ftil Mixed use r1 Low Density Residential IIIII Education _,I Industrial BM Medium to High Density Residential Office !II Pleasure Island L__-}Parks and Open Space -RetailiCommercial c"`,r Port Arthur City Limits Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 39 Parcel 255857, FM 365 Easements, Encroachments and Restrictions We were not provided a formally produced,consolidated title commitment for review. Nevertheless,the client provided numerous documents detailing historical and current encumbrances of the Subject Property,which the appraiser has reviewed. Further,the appraiser conducted research through the Texas Railroad Commission GIS Viewer to detect the existing pipelines. A Refined Liquid Product pipeline owned in part by Independent Refining Corp. line runs east-west across the entirety of the property approximately 230 feet south of the north property line as it fronts FM 365.A Crude Oil Gathering pipeline owned in part by Independent Refining Corp. runs east-west across the entirety of the property approximately 360 feet south of the north property line as it fronts FM 365.According to the Railroad Commission GIS Viewer, both pipelines are abandoned.Thus the appraisers have made the Extraordinary Assumption that the Railroad Commission designation of the respective pipelines being abandoned is accurate. Please reference the exhibit below displaying the two pipeline easements in green,and an outline of the Subject Property in red. Our valuation assumes no additional impacts from easements,encroachments,or restrictions,and further assumes that the subject has clear and marketable title.All client-provided documents are located in the appraisers'workfile. } 1 L,',ned Liquid Reamed Lrqurd Product Product 32507 "rarrstrnssrgl Trot nnssicm Ole Od Gathertnst C2 Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 40 Parcel 255857, FM 365 Environmental Hazards An environmental assessment report was not provided for review and environmental issues are beyond our scope of expertise. No hazardous substances were observed during our inspection; however,we are not qualified to detect such substances. Unless otherwise stated,we assume no hazardous conditions exist on or near the subject. Conclusion of Land Analysis Overall,the physical characteristics of the site and the availability of utilities result in functional utility suitable for a variety of uses including those permitted by zoning.We are not aware of any other particular restrictions on development. Improvements Description and Analysis Although the Subject Property is improved with a RV park,the proposed acquisition consists of land only. Therefore,as of the effective date of value,the Subject Property is valued as effectively vacant land with no site improvements.The RV Park is comprised of 136 variously sized pad sites(Back-In,Premium Back-In, Pull- Thru,ADA Pull-Thru,and Premium Pull-Through) ranging in price from$654-$724 monthly. Amenities at Port Arthur RV Resort include a community center,fitness center,laundry facility, lounge area,showers& restrooms,and playgrounds/pool.As the proposed acquisition consists of land only,no permanent damages are anticipated. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 41 Parcel 255857,FM 365 Real Estate Taxes Address of property, property owner,address of property owner,occupant's name,real estate taxes and assessments for the current tax year are shown in the following tables: Address of Property: 2950 FM 365,Port Arthur, 77640 Property Owner: 2920 PARV Holdings,LLC Address of Property Owner: 2950 W Highway 365,Port Arthur,TX 77640 Property Tax Analysis Tax ID Numbers:255857 Land Assessment $225,344 Building Assessment $3 809 039 Total Assessment $4,034,383 Tax Rate 2.921045% Indicated Tax Liability $117,846 The above tax rates and tax values are 'current'for tax year 2023. Tax records indicate that the site has 19.1600 acres,or 834,610 square feet,indicating a land assessment of $11,761 per acre of land area. Based on our investigations,analyses and conclusions in this report,the assessed value of the subject property for the current tax year appears to be low. Assessment valuations,when compared to market valuations,are different due to multiple factors that are outside of the scope of this analysis,which include methodology,purpose,and variations in opinion. It is not known how the appraisal district arrived at their size estimates for the subject. Tax records utilize different techniques for determining property boundaries than do surveyors,including consideration of Geographic Information Systems(GIS) protocols and are generally given less credence than an on-the-ground survey of a property. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 42 Parcel 255857, FM 365 Whole Property Valuation Summary VALUATION APPROACHES:The Subject is valued as effectively vacant land with no site improvements;therefore,the Sales Comparison Approach(Land Only)was developed as part of this appraisal.The Cost Approach,Sales Comparison Approach (as Improved)and Income Approach are not considered applicable and have not been utilized herein. Cost Approach... $ N/A Sales Comparison Approach(Land Only) $ 479,000 Income Approach $ N/A $ 479,000 Copyright O Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 43 Parcel 255857, FM 365 Whole Property Valuation Highest and Best Use Process Before a property can be valued,an opinion of highest and best use must be developed for the subject site, both as vacant,and as improved (if applicable).The highest and best use must be: • Legally Permissible:What uses are permitted by zoning and other legal restrictions? • Physically Possible:To what use is the site physically adaptable? • Financially Feasible:Which possible and permissible use will produce any net return to the owner of the site? • Maximally Productive:Among the feasible uses which use will produce the highest net return,(i.e.,the highest present worth)? Highest and Best Use — Whole Property Legally Permissible We were not provided a formally produced,consolidated title commitment for review.Nevertheless,the client provided numerous documents detailing historical and current encumbrances of the Subject Property,which the appraiser has reviewed. Further,the appraiser conducted research through the Texas Railroad Commission GIS Viewer to detect the existing pipelines. A Refined Liquid Product pipeline owned in part by Independent Refining Corp. line runs east-west across the entirety of the property approximately 230 feet south of the north property line as it fronts FM 365.A Crude Oil Gathering pipeline owned in part by Independent Refining Corp. runs east-west across the entirety of the property approximately 360 feet south of the north property line as it fronts FM 365. Based on the existing real property elements observed from the site inspection and aerial imagery on the Subject Property,development is not considered particularly restrictive along these areas.The subject is located in the City of Port Arthur and is currently zoned "PD", Planned Development District. The purpose of the Planned Development District is to provide greater flexibility and opportunity for innovation in projects.The Subject Property will be zoned for commercial use in the future according to the City of Port Arthur Comprehensive Plan.To our knowledge,there are no other legal restrictions such as easements or deed restrictions that would effectively limit the use of the property. Physically Possible Many physical characteristics of a site can affect the uses to which it can be developed.The characteristics can include size, location,shape, road frontage,topography,easements,utility availability and flood plain,among others.Overall,the Subject Whole Property has sufficient positive physical characteristics to support many types of development. Financially Feasible The uses that are physically possible and legally permissible must be analyzed further to determine those that are likely to produce some income or return greater than the combined income needed to satisfy operating expenses,financial expense and capital amortization. Nearby property uses consist predominately of Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 44 Parcel 255857, FM 365 commercial uses along the arterials with single-family residential,agricultural and vacant land uses along the interior tracts.All uses that are expected to produce a positive return are regarded as financially feasible. From a financially feasible perspective,the highest and best use at the present time is considered commercial development. Maximally Productive Considering all reasonably probable development scenarios and potential values that could be created versus the cost of development of each,we conclude that the highest and best use of the property is commercial development.The maximally productive use of the Subject Whole Property is considered the same. Conclusion -As Vacant After consideration of the legally permissible, physically possible,financially feasible and maximally productive uses,the highest and best use of the Subject Property is commercial. Conclusion -As Improved As of the effective date of value,the Subject Property operates as a RV Park comprised of 136 variously sized pad sites(Back-In, Premium Back-In,Pull-Thru,ADA Pull-Thru,and Premium Pull-Through) ranging in price from$654-$724 monthly. Amenities at Port Arthur RV Resort include a community center,fitness center, laundry facility,lounge area,showers&restrooms,and playgrounds/pool.As the proposed acquisition consists of land only, no permanent damages are anticipated.As the proposed acquisition consists of land only,and no improvements will suffer diminished functionality as a result of the acquisition,the Subject Property has been appraised as vacant land with no known site improvements.Therefore,the highest and best use of the Subject,as improved, is not applicable. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 45 Parcel 255857, FM 365 Larger Parcel Analysis The following describes the highest and best use,ownership,and contiguity of each parcel surrounding the subject property. Surrounding Parcels Description Location Parcel ID;Address Zoning Ownership Contiguity North 85427;2901 Highway 365 LI,Light Industrial NG International,LLC Seperated by Highway 365(ROW) East 86772;S/L of Hwy 365,W of Jade Ave. LDR,Low Density Residential Jefferson County DD7 Yes South 246369&86216&86215;6625 Jade Ave. LDR,Low Density Residential Aref&Singla,LLC,Debra Seperated by canal Schumann,Gloria&Jose Sanchez West 266500&361262;S/L of Hwy 365,W of Jade Ave. CR,Commercial Retail Jeanette Daley,Cesar Montes Yes As demonstrated in the preceding table,there are two contiguous parcels to the subject property,however all adjacent properties have different ownership entities,and there is a variety of zoning designations.Thus,the Larger Parcel consists of the 834610 square foot site delineated as Parcel ID 255857. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 46 Parcel 255857, FM 365 Valuation Methodology Three basic approaches may be applicable and utilized,then reconciled to arrive at an estimate of market value.An approach to value is included or eliminated based on its applicability to the property type being valued and the information available.The reliability of each approach depends on the availability and comparability of market data as well as the motivation and thinking of purchasers. Cost Approach The Cost Approach is based on the proposition that an informed purchaser would pay no more for the subject than the cost to produce a substitute property with equivalent utility. In the Cost Approach,the appraiser forms an opinion of the cost of all improvements,depreciation from physical,functional and external causes. The land value,entrepreneurial profit and depreciated improvement costs are then added,resulting in an indication of value. Sales Comparison Approach The Sales Comparison Approach compares sales of similar properties with the subject property. Each comparable sale is adjusted for its inferior or superior characteristics.The values derived from the adjusted comparable sales form a range of value for the subject.A gross income multiplier and/or effective gross income multiplier may also be analyzed. By process of correlation and analysis,a final indicated value is derived. Income Approach In the Income Capitalization Approach the income-producing capacity of a property is estimated by using contract rents on existing leases and by estimating market rent from rental activity at competing properties for the vacant space. Deductions are then made for vacancy and collection loss and operating expenses.The resulting net operating income is divided by an overall capitalization rate to derive an opinion of value for the subject property.The capitalization rate represents the relationship between net operating income and value. This method is referred to as Direct Capitalization. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 47 Parcel 255857, FM 365 Land Valuation - Whole Property To develop an opinion of the subject's land value,as if vacant and available to be developed to its highest and best use,we utilize the sales comparison approach. It is based on the premise that a buyer would pay no more for a specific property than the cost of obtaining a property with the same quality,utility,and perceived benefits of ownership.The steps taken to apply this approach are generally described as follows: 1. Identify relevant property sales 2. Research,assemble,and verify pertinent data for the most relevant sales 3. Analyze the sales for material differences in comparison to the subject 4. Reconcile the analysis of the sales into a value indication for the subject For this analysis,we use price per acre as the appropriate unit of comparison because market participants typically compare sale prices and property values on this basis.The most relevant sales are summarized in the following pages.Sales data was researched via the local MLS(Multiple Listing Service),other reliable sales databases,public records and confirmed,when possible,with a party to the transaction. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 48 Parcel 255857, FM 365 Sales Comparison Approach (Land Only) VALUATION GRID Representative Comparable Sales Subject Comp No.1 Comp No.2 Comp No.3 Comp No.4 SEC of US-90&S Pine W/L of W Port Arthur Address 2950 FM 365 2195 Wellspring Drive 1801 Highway 365 Island Road Drive,S of Northern Drive City Port Arthur Beaumont Port Arthur Beaumont Port Arthur Grantor Blackwell Family Terry Hamilton Retha G.Mayfield Partners,LTD Park 365,LTD. Williford,et al Estate Corkran SPI Development, Grantee CRV-PA I Confidential Management,LLC LLC Date of Sale 9/26/2023 7/6/2022 9/2/2021 5/14/2021 10/13/2023 Size(Acres) 19.1600 71.5160 58.8200 72.7300 35.0000 Size(Square Feet) 834,610 3,115,237 2,562,199 3,168,119 1,524,600 Sale Price - $1,100,000 $1,775,880 $670,000 $875,000 Unit Price Per Acre $15,381 $30,192 $9,212 $25,000 Property Rights 0% 0% 0% 0% Financing Terms 0% 0% 0% 0% Conditions of Sale 0% 0% 0% 0% Date of Sale(Annual Adjustment) 2% 2% 4% 5% 0% Adjusted Price Per Acre $15,689 $31,400 $9,673 $25,000 Location -20% -25% 20% 0% Physical Features Size 19.1600 acres 20% 15% 20% 5% Utilities 0% 0% 10% 0% Topography/Flood -5% 0% 15% 0% Zoning/Use Potential 0% 0% 0% 0% Shape 0% 0% 0% 10% Frontage/Access 10% 0% 0% 0% Total Adjustments 5% -10% 65% 15% Indicated Unit Value $16,473 $28,260 $15,960 $28,750 Estimated Unit Value $25,000 Estimated Value by Sales Comparison Approach $479,000 For an explanation of adjustments with reconciliation,please see the following pages. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 49 Parcel 255857, FM 365 COMPARABLE DATA SUPPLEMENT Land Sale 1 • 1 ` z 4 ca hio l. . ,:� � Grantor/Lessor: Blackwell Family Partners,LTD Grantee/Lessee: Corkran Management,LLC Date: 7/6/2022 Recording Information: 2022024088 Lat/Lon: 29.9848414754407,-94.024440420087 Address: 2195 Wellspring Drive,Beaumont,TX Zip Code: 77705 Confirmed Price: $1,100,000 Verified with: Ryan Harrington,Listing Broker,ph.(409)892-7245 Terms and Conditions of Sale: Arm's Length Land Size: 3,115,237 Square Feet or 71.5160 Acres Unit Price as Vacant: $15,381 Per Acre Type Street: Collector Road Utilities: Proximate to site Improvement(s)Description: N/A Current Use: Vacant Land Highest&Best Use: Residential Zoning: N/A Flood Plain: B Topography: Gently sloping This represents the sale of approximately 71.52 acres of land located at 2195 Wellspring Drive for$1,100,000 or$0.35 per square foot on July 6, 2022.The site is not zoned and is located entirely within the B flood zone(500-year floodplain).There is currently an approximately 22-acre lake on the property.According to the confirming source,all utilities are available from the end of Wellspring Drive connected to the adjacent neighborhood.The buyer intends to develop a single-family residential neighborhood on the property.This was confirmed to be a straight- forward market transaction.All details were confirmed with the listing broker,Ryan Harrington. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 50 Parcel 255857, FM 365 COMPARABLE DATA SUPPLEMENT Land Sale 2 4 •w Grantor/Lessor: Park 365,LTD. Grantee/Lessee: CRV-PA I Date: 9/2/2021 Recording Information: 2021031342 Lat/Lon: 29.9375191085023,-94.0042645721698 Address: 1801 Highway 365,Port Arthur,TX Zip Code: 77640 Confirmed Price: $1,775,880 Verified with: MLS,Public Record Terms and Conditions of Sale: Arm's Length Land Size: 2,562,199 Square Feet or 58.8200 Acres Unit Price as Vacant: $30,192 Per Acre Type Street: Arterial Road Utilities: Proximate to site Improvement(s)Description: N/A Current Use: Vacant Land Highest&Best Use: Industrial Zoning: HI Flood Plain: AH Topography: Generally Level This represents the sale of approximately 58.82 acres of land located at 1801 Highway 365 for$1,775,880 or$0.69 per square foot on September 2,2021.The site is zoned HI(Heavy Industrial District)and has the availability to connect to utilities from the end of the street. The site is entirely inundated by the 100-year floodplain.All details were confirmed through public record. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 51 Parcel 255857, FM 365 COMPARABLE DATA SUPPLEMENT Land Sale 3 i 4 Grantor/Lessor: Terry Hamilton Williford,et al. Grantee/Lessee: SPI Development,LLC Date: 5/14/2021 Recording Information: 2021016985 Lat/Lon: 30.0561271417071,-94.2534533460022 Address: SEC of US-90&S Pine Island Road,Beaumont,TX Zip Code: 77706 Confirmed Price: $670,000 Verified with: MLS,Public Record Terms and Conditions of Sale: Arm's Length Land Size: 3,168,119 Square Feet or 72.7300 Acres Unit Price as Vacant: $9,212 Per Acre Type Street: Arterial/Collector Corner Utilities: No Public Utilities Improvement(s)Description: N/A Current Use: Vacant Land Highest&Best Use: Commercial/Residential Zoning: N/A Flood Plain: AE Topography: Generally Level The site is not zoned and does not have access to public utilities.The site is almost entirely inundated by the 100-year floodplain,with a portion being in the floodway.All details were confirmed through public record. Copyright©Jones Lang LaSalle IP,Inc.2024.Alf Rights Reserved. 52 Parcel 255857, FM 365 COMPARABLE DATA SUPPLEMENT Land Sale 4 • • Grantor/Lessor: Retha G.Mayfield Estate Grantee/Lessee: Confidential Date: 10/13/2023 Recording Information: N/A Lat/Lon: 29.9369656414822,-94.0326600364915 Address: W/L of W Port Arthur Drive,S of Northern Drive,Port Arthur,TX Zip Code: 77705 Confirmed Price: $875,000 Verified with: Charlotte Moses,Listing Broker,ph.(409)549-3726 Terms and Conditions of Sale: Under Contract Land Size: 1,524,600 Square Feet or 35.0000 Acres Unit Price as Vacant: $25,000 Per Acre Type Street: Arterial Road&Collector Road Utilities: Proximate to site Improvement(s)Description: N/A Current Use: Vacant Land Highest&Best Use: Industrial Zoning: LI Flood Plain: X&X500 Topography: Generally Level This represents the pending sale of approximately 35.0 acres of land located along the west line of W Port Arthur Drive for$875,000 or $0.57 per square foot as of October 16,2023.The site is zoned LI,Light Industrial and is located primarily in Flood Zone X,or outside of the floodplain.A small portion of the southern part of the property is located in Zone X500,or the 500-year floodplain.The site has the availability to connect to nearby existing utility lines to the south.All details were confirmed by the listing broker,Charlotte Moses. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 53 Parcel 255857, FM 365 Comparable Land Sales Map DOWN,,wN -`5'A -a-~rat Beaumont fit AMELIA S B TAuto`Pas Sam Club aumont,TX Hartmann Building Specialties '`" zUMMJ Tyrrell Park CD Ford Park 96 Entertainment Complex Central Gardens Cheek 0 rn,, i Jack Brooks NedE Bayou Din Golf Club Regional ional Airport a p Viterbo eh i' I 0 0 Fannett f s FGar ACRES Miles From No. Address Location Subject Acres Price/Acre 1 2195 Wellspring Drive Beaumont,TX 5.03 71.5160 $15,381 2 1801 Highway 365 Port Arthur,TX 2.59 58.8200 $30,192 3 SEC of US-90&S Pine Island Road Beaumont,TX 16.31 72.7300 $9,212 4 W/L of W Port Arthur Drive,S of Northern Drive Port Arthur,TX 1.68 35.0000 $25,000 S 2950 FM 365 19.1600 *There were limited recent sales in the immediate market area similar in size and highest and best use of the Subject.Consequently,the appraisers have had to go outside of the immediate market area to derive sales. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 54 Parcel 255857, FM 365 Analysis and Adjustment of Sales Our rating of each comparable sale in relation to the Subject is the basis for the adjustments. If the comparable is superior to the Subject, its sale price is adjusted downward to reflect the Subject's relative inferiority;if the comparable is inferior,its price is adjusted upward.The elements of comparison are: Real Property Rights Conveyed This adjustment is generally applied to reflect the transfer of property rights different from those being appraised,such as differences between properties owned in fee simple and in leased fee. For this analysis, no adjustments are required. Financing Terms This adjustment is generally applied to a property that transfers with atypical financing,such as having assumed an existing mortgage at a favorable interest rate.Conversely,a property may be encumbered with an above-market mortgage that has no prepayment clause or a very costly prepayment clause. Such atypical financing often plays a role in the negotiated sale price. For this analysis,none of the comparables are believed to be owner-financed;Thus no adjustments are required as all properties were cash transactions or conventionally financed. Conditions of Sale This adjustment category reflects extraordinary motivations of the buyer or seller to complete the sale. Examples include a purchase for assemblage involving anticipated incremental value or a quick sale for cash. This adjustment category may also reflect a distress-related sale,or a corporation recording a non-market price. For this analysis, no adjustments are required. Expenditures at Purchase This adjustment is appropriate in situations where the sale price has been influenced by expenditures that the buyer intended to make immediately after purchase. Examples include buyer-paid sales commissions,buyer- paid back taxes,and costs to demolish obsolete structures to clear a site for redevelopment. For this analysis, no adjustments are required. Market Conditions Market conditions adjustments encapsulate changes in the economic environment over time which affects the appreciation and depreciation of real estate market values.The market transactions used reflect current market conditions. Based on available data,including MLS data,CoStar data,JLL data,comparable sale data, and discussions with market participants,an annual upward adjustment of 2%for market conditions was considered appropriate. Location Location can have a great impact on property values.This adjustment category considers general market area influences such as the nature of the surrounding properties, population trends,as well as access from local thoroughfares.The Subject Property is located in the Port Acres area of Port Arthur.Comparables 1 and 2 are located in areas with more commercial synergy of development and have been adjusted downward due to their superior location when compared to the Subject Property. Comparable 3 is located outside of Beaumont city limits and is further detached from commercial development,and thus has been adjusted upward for its Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 55 1 Parcel 255857,FM 365 inferior location when compared to the Subject Property.Comparable 4 is in proximity to the Subject Property and has not been adjusted for location. Size The Subject and Comparable Sales have been analyzed based on a price per acre basis. Economies of scale indicate that as the incremental units of comparison increase the price per unit decreases and likewise would increase as the increment units of comparison decrease. The data set shows that the two largest sales sold at the two lowest price points.The Subject Whole Property is 19.1600 acres(834,610 SF).All four comparables are larger than the Subject Property and have been adjusted upward as a result. Utilities Without water,sewer and electric services,property owners must incur additional costs to either extend public utilities or provide other means for those services.As of the date of this appraisal,the Subject Property is served by public water and public sewer.Comparables 1,2,and 4 have the availability to connect to existing utility lines and have not been adjusted.Comparable 3 does not have access to public utilities and has been adjusted upward. Floodplain/Topography A tract's topography and location in a flood hazard area affects the development cost and potential of a site and,thus,its overall value.The Subject Property has generally level topography and is situated in Zone AH, considered a high-risk area.Comparable 1 is situated in Zone X and X500 and has been adjusted downward for its superior flood zone status.Comparable 3 is situated in Zone AE and is partially located within the floodway.As a result Comparable 3 has been adjusted upward for its inferior flood zone status. Comparables 2 and 4 are located in the 100-year floodplain,similar to the Subject Property,and have not been adjusted for floodplain. Zoning/Use Potential Zoning is a governmental restriction on a property that limits the development to certain types of uses relative to each type of zoning classification.The Subject Property is located in the City of Port Arthur designated for planned unit development.The pond/lake on Sale 1 is considered a neutral attribute as it will be used as an amenity for the development. No adjustments were deemed necessary for zoning/use potential. Shape The shape of a property can impact its development potential.Therefore,narrow or restrictive dimensions can influence overall value.The Subject Property's shape,though irregular, has no negative impact on value. Comparable 4 has an abnormal,triangular shape and has been adjusted upward.The remaining three comparables are similar in shape to the Subject Property and have not been adjusted. Frontage/Access Frontage and access can affect development potential,and thus the overall value of a property.The Subject Whole Property has frontage and access along FM 365,an arterial roadway in the local area.Comparable 1 is located off a collector road and has been adjusted upward for its inferior access/frontage.The remaining three comparables have access/frontage from an arterial roadway and have not been adjusted. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 56 Parcel 255857,FM 365 Land Value Conclusion Based on the preceding analysis and adjustments,the comparable sales provide a range of value indications from $15,960 to$31,400 per acre with an average of$24,163 per acre.As indicated,there were limited sales to use for comparison.Comparable 3 is outside of the immediate market area and required substantial adjustments,and therefore was given least weight. It is our opinion that the applicable unit value is$25,000 per acre.This results in a concluded property value as follows: Sales Comparison Analysis-Land Value per Acre Unit Value Land Area Concluded Land Value Fee Area $25,000 /Acre 19.1600 Acres $479,000 Total $479,000 Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 57 Parcel 255857, FM 365 a Final Reconciliation — Whole Property A final discussion of the applicability of valuation approaches is required by USPAP. Reconciliation involves the analysis of alternative value indications to determine a final value conclusion.The appraisal of real estate typically employs three traditional valuation methods:the Sales Comparison Approach,the Cost Approach,and the Income Approach.The values indicated by the applicable approaches are as follows: Value Indications-Whole Property Cost Approach N/A Sales Comparison Approach (Land Only) $479,000 Income Capitalization Approach N/A Reconciliation - Whole Property Before Acquisition The Subject is valued as vacant land with no site improvements.As such,the Sales Comparison Approach(Land Only) has been developed and utilized as an indication of value herein.The Cost Approach,Sales Comparison Approach(as Improved)and Income Approach are not considered applicable and have not been developed. Based on the analyses and conclusions in the accompanying report,and subject to the definitions, assumptions,and limiting conditions expressed herein,it is our opinion that the market value as of September 26,2023 is: Concluded Value-Whole Property Improvements $0 Land $479,000 Reconciled Value-Whole Property $479,000 Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 58 Parcel 255857,FM 365 Part to Be Acq u i red The part to be acquired may be valued in two different manners. If the part to be acquired can be considered an individual economic entity,then it is valued as a separate parcel.Thus,this may require that all three approaches to value and possibly,a whole new set of market data be considered,which would be more comparable to the part acquired,than just the reuse of the market data utilized in the whole property valuation.On the other hand,if the part acquired cannot be considered an individual economic entity,then its value contribution to the entire parcel is used. In this case,the value of the part to be acquired would not be independent and the part to be acquired represents the prorated value from the whole property. The value of the remainder before the acquisition is found by subtracting the value of the part to be acquired from the value of the whole property.The remaining property before the acquisition is sometimes referred to as the"residual." Property Description - Part to Be Acquired Based on information and survey exhibits provided by the client,these indicate that the part to be acquired includes the partial rights of land area as follows: Part Acquired Square Feet Acres 255857 46,304 1.0630 The partial acquisition of rights of land area is contained within a generally triangular shaped parcel of land along the north line of the Subject as it fronts FM 365 pursuant to the FM 365 Project in proximity to Rodair Gully. Based on the information furnished by the Client,the proposed partial acquisition will consist of 1.0630 acres or 46,304 SF.None of the Subject Property's main improvements are located within or considered affected by the acquisition area;the proposed acquisition consists of land only.According to the information furnished to the appraiser,there will be no known denial of access. The project/survey map and legal description of the part to be acquired are presented in the addenda of this report.A map of the proposed acquisition area prepared by the appraiser and based on an aerial overlay of the documents provided by the client is shown on the following page. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 59 Parcel 255857, FM 365 Aerial Overlay- Part to Be Acquired io at; _..„,,.... tee ' . , 2, . , .. ,,.- :- * * ..*: 1 .., �` `�' pp i I I * , t!{+ , ✓f r pp t In the image presented above,as created by the appraiser,the Subject Whole Property boundaries are outlined in yellow whereas the proposed partial acquisition property is outlined and shaded in red. Copyright©Jones Lang LaSalle IP,Inc.2024.Al,Rights Reserved. 60 Parcel 255857, FM 365 Survey Exhibit — Part to Be Acquired ,4. 5.5.4 Ct T. ( f Tbt� Ol rIt VIZs f111'11. 1 S r W...ertbiSip CNo,Ti J r4k{NC 1531 PAU 426 x 1Z r3.A.J.G Tom, 4i ' f ILE01 J♦N651ss a, 1.960 p d¢ F�o NC I ff I ER.T[011a1. L. 111p1R♦:OuCM 6Vii9Ey. 1a5,h51E5T 50, 20'6009657 SM♦R0N 50,1(5♦OCOLS A Noa"'o O.R....C.!. :NSi1AEN1 50, 20'5016.32 :Auto S.ltr2 .2v .a u1 W i ` i { ,Pa ES F'l E0' MaRCN l0. 2C'{ 1 6 S CaL tEO 922.CAPS ,IAO1 NWE5015 S. 2013 '.j 1110't'� ENO PROJECT a CS4,0920•13-03? FM S65 VA 719.91.45 _iti —FM-365 — — .00— — -- — — .— s PROP POI _ 4E♦9E1a♦. MET 55061t1 MB. 20'6-115105 1553RyN(NT Na 20110025/9 Exhibit A 0 R J.C.i. P,Rr,a1C ?EN♦1NOER Of INSTN1NRaT W. 11901.0900 CK.(O 9.ECO,tags Proposed ROW '. FitED1 J♦W,a,1S. 2C'1 C4sE0 15.16♦4K5 FM 365 vicinity Rodair Gully AP/Hs♦Pi b. 2019 e Jefferson County,TX • 1 PARCEL 10 .4ASO 004ER 1ROM IMPACT (acres) .f 7ii34 i.M. F4,BER FE:tA M. NEBER7 KO LOOM y 330 ( RECRT, TrAJSTEES OF '4CeERT TRUST' 2 64763 1,4004 140* M3E A7 ,T+rEr'h+£kT CO 0 442 3 66764 llt „SPaE104flN ,; ,44, 00'. `RAK t93 0.006 4 66712 I JEx'I:ER 0 Cf 1T7 004, TRAR 499 !.705 S 255957 PARY, L 1..= 1.063 Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 61 Parcel 255857, FM 365 Highest and Best Use - Part to be Acquired Highest and best use may be defined as the reasonably probable and legal use of vacant land or an improved property that is physically possible,appropriately supported,and financially feasible and that results in the highest value.The four tests,applied in order,to develop adequate support for an opinion of highest and best use are legal permissibility, physical possibility,financial feasibility and maximum productivity. As-Vacant Analysis - Part to be Acquired Due to its size and narrow frontage-to-depth dimensions,the area of the partial acquisition (partial rights) would likely not stand alone as a separate economic unit.The partial acquisition's use is essentially limited to use in conjunction with the Subject Whole Property.As such,the highest and best use of the partial acquisition,as vacant,is for use in conjunction with the Subject Whole Property. As-Improved Analysis - Part to be Acquired The highest and best use of the partial acquisition,as improved,is the same as the Subject Whole Property. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 62 Parcel 255857,FM 365 Summary- Part to be Acquired In this instance,the Subject part to be acquired includes the rights of land area.As an integral part of the Subject Whole Property,the part to be acquired shares the same physical and economic characteristics. Because the highest and best use of the part to be acquired is for the same use in conjunction with the Subject Whole Property,the part to be acquired shares the same per-unit value of the land concluded in the valuation of the Subject Whole Property. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 63 Parcel 255857, FM 365 Remainder Property Valuation Summary VALUATION APPROACHES:The Subject Remainder is valued as effectively vacant land with no site improvements;therefore,the Sales Comparison Approach(Land Only)was developed as part of this appraisal.The Cost Approach,Sales Comparison Approach (as Improved)and Income Approach are not considered applicable and have not been utilized herein. Cost Approach . $ N/A Sales Comparison Approach(Land Only) $ 452,425 Income Approach .. $ N/A $ 452,425 Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 64 Parcel 255857, FM 365 Remainder Analysis The value of the remainder after the acquisition is an estimate of the market value taking into consideration the effect that the proposed easement or right-of-way will have on the remainder.This valuation is based upon a new site analysis, highest and best use analysis,as well as the consideration of the three approaches to value. Damages or benefits to the remainder are found by subtracting the value of the remainder after the acquisition from the value of the remainder before the acquisition. If positive,damages exist. Likewise,if the figure is negative,benefits are present(enhancement). Property Description - Remainder The size of the Remainder Property is calculated as the Whole Property less any fee simple acquisitions. Following the acquisition,the Remainder Property will consist of 18.0970 acres or 834,610 SF.Overall,the Remainder will retain the same highest and best use as prior to the proposed partial acquisition. Highest and Best Use - Remainder After Conclusion -As Vacant- Remainder After The legal,physical and locational attributes of the Subject Property are considered to be effectively unchanged after the partial acquisition.After consideration of the legally permissible,physically possible, financially feasible and maximally productive uses,the highest and best use of the Subject Remainder Property is commercial. Conclusion -As Improved - Remainder After As of the effective date of value,the Subject Property is valued as effectively vacant land with no site improvements.Therefore,the highest and best use of the Subject,as improved,is not applicable. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 65 Parcel 255857, FM 365 Sales Comparison Approach (Land Only) VALUATION GRID Representative Comparable Sales Subject Comp No.1 Comp No.2 Comp No.3 Comp No.4 SEC of US-90&S Pine W/L of W Port Arthur Address 2950 FM 365 2195 Wellspring Drive 1801 Highway 365 flan-Road Drive,S of Northern IDrive City Port Arthur Beaumont Port Arthur Beaumont Port Arthur Blackwell Family Terry Hamilton Retha G.Mayfield Grantor Partners,LTD Park 365,LTD. Williford,et al Estate Grantee _ Corkran CRV-PA I SPI Development, Confidential Management,LLC LLC Date of Sale 9/26/2023 7/6/2022 9/2/2021 5/14/2021 10/13/2023 Relative Location Port Arthur Beaumont Port Arthur Beaumont Port Arthur Size(Acres) 18.0970 71.5160 58.8200 72.7300 35.0000 Size(Square Feet) 788,305 3,115,237 2,562,199 3,168,119 1,524,600 Sale Price - $1,100,000 $1,775,880 $670,000 $875,000 Unit Price Per Acre $15,381 $30,192 $9,212 $25,000 Property Rights 0% 0% 0% 0% Financing Terms 0% 0% 0% 0% Conditions of Sale 0% 0% 0% 0% Date of Safe(Annual Adjustment) 2% 2% 4% 5°ro 0°10 Adjusted Price Per Acre $15,689 $31,400 $9,673 $25,000 Location -20% -25% 20°ro 0% Size 20% 15% 20% 5% Utilities 0% 0% 10% 0% Topography/Flood -5% 0% 15°%o 0% Zoning/Use Potential 0% 0% 0% 0% Shape 0% 0% 0% 10% Frontage/Access 10% 0% 0% 0°ro Total Adjustments 5% -10% 65% 15% Indicated Unit Value $16,473 $28,260 $15,960 $28,750 Estimated Unit Value $25,000 Fee Area 18.0970 AC $452,425 Estimated Value by Sales Comparison Approach $452,425 For an explanation of adjustments with reconciliation,please see the Whole Property analysis for the land sale discussion which is applicable to the Remainder After Property. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 66 Parcel 255857,FM 365 Conclusion of Value - Remainder After Reconciliation involves the analysis of alternative value indications to determine a final value conclusion.The values indicated by the applicable approaches are as follows: Value Indications-Remainder After the Acquisition Cost Approach N/A Sales Comparison Approach(Land Only) $452,425 Income Capitalization Approach N/A Reconciliation - Remainder After the Acquisition The Subject Property Remainder is valued as effectively vacant land with no site improvements.As such,the Sales Comparison Approach(Land Only)is considered applicable and developed herein.The Cost Approach, Sales Comparison Approach(as Improved)and Income Approach are not considered applicable and have not been utilized as indictions of value. Based on the analyses and conclusions in the accompanying report,and subject to the definitions, assumptions,and limiting conditions expressed herein, it is our opinion that the market value as of September 26,2023 is: Concluded Value-Remainder After the Acquisition Improvements $0 Land $452,425 Reconciled Value-Remainder After $452,425 Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 67 Parcel 255857, FM 365 Compensation Summary EXPLANATION OF DAMAGES(if any):No permanent damages are a result of the proposed acquisition. WHOLE PROPERTY: The market value of the gross whole property is................................ $ 479,000 PART TO BE ACQUIRED: Considered as severed land,the fee simple title to the part being acquired is.. $ 26,575 REMAINING PROPERTY: The value of the remainder immediately before the taking is $ 452,425 Considering the uses to which the part taken is to be subjected, the market value of the remainder immediately after the acquisition is......................... ........................................... $ 452,425 NET DAMAGES OR ENHANCEMENTS,if any $ 0 Cost to Cure $ 0 TOTAL COMPENSATION.. $ 26,575 Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 68 Parcel 255857,FM 365 Certification We certify that,to the best of our knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses,opinions,and conclusions are limited only by the reported assumptions and limiting conditions,and are our personal,impartial,and unbiased professional analyses,opinions, and conclusions. 3. We have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. 4. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client,the amount of the value opinion,the attainment of a stipulated result,or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7. Our analyses,opinions,and conclusions were developed,and this report has been prepared,in conformity with the Uniform Standards of Professional Appraisal Practice as well as applicable state appraisal regulations. 8. The reported analyses,opinions,and conclusions were developed,and this report has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 9. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 10. We have not relied on unsupported conclusions relating to characteristics such as race,color,religion, national origin,gender,marital status,familial status,age,receipt of public assistance income, handicap,or an unsupported conclusion that homogeneity of such characteristics is necessary to maximize value. 11. It is our opinion that the subject does not include any enhancement in value as a result of any natural, cultural, recreational or scientific influences retrospective or prospective. 12. We have experience in appraising properties similar to the subject and are in compliance with the Competency Rule of USPAP. 13. We have performed no other services,as an appraiser or in any other capacity,regarding the property that is the subject of this report within the three-year period immediately preceding the agreement to perform this assignment. 14. W. Cameron Boone, IV,MAI,R/W-AC has personally inspected the property that is the subject of this report.Chase A.Gonzales has not personally inspected the property that is the subject of this report. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 69 Parcel 255857, FM 365 15. Significant real property appraisal assistance was provided by Chase A.Gonzales who has not signed this certification. 16. As of the date of this report,W.Cameron Boone,IV, MAI, R/W-AC,has completed the continuing education program for Designated Members of the Appraisal Institute. W.Cameron Boone, IV,MAI, R/W-AC Executive Director TX Certificate#:TX 1338682 G Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 70 Limiting Conditions and Assumptions 1. All reports and work product we deliver to you (collectively called"report") represent an opinion of value,based on historical information and forecasts of market conditions.Actual results may vary from those forecast in the report.There is no guaranty or warranty that the opinion of value reflects the actual value of the property. 2. The conclusions stated in our report apply only as of the effective date of the appraisal,and no representation is made as to the effect of subsequent events.Assessed values may change significantly and unexpectedly over short periods.We are not liable for any conclusions in the report that may be different if there are subsequent changes in value.We are not liable for loss relating to reliance upon our report more than three months after its date. 3. There may be differences between projected and actual results because events and circumstances frequently do not occur as predicted,and those differences may be material. We are not liable for any loss arising from these differences. 4. We are not obligated to predict future political,economic or social trends. We assume no responsibility for economic factors that may affect or alter the opinions in the report if the economic factors were not present as of the date of the letter of transmittal accompanying the report. 5. The report reflects an appraisal of the property free of any liens or encumbrances unless otherwise stated. 6. We assume responsible ownership and competent property management. 7. The appraisal process requires information from a wide variety of sources.We have assumed that all information furnished by others is correct and complete, up to date and can be relied upon, but no warranty is given for its accuracy.We do not accept responsibility for erroneous information provided by others.We assume that no information that has a material effect on our appraisal has been withheld. 8. We assume the following, unless informed to the contrary in writing: Each property has a good and marketable title.All documentation is satisfactorily drawn and that there are no encumbrances, restrictions,easements or other adverse title conditions,which would have a material effect on the value of the interest under consideration. There is no material litigation pending involving the property. All information provided by the Client,or its agents,is correct,up to date and can be relied upon.We are not responsible for considerations requiring expertise in other fields, including but not limited to: legal descriptions,interpretation of legal documents and other legal matters,geologic considerations such as soils and seismic stability,engineering,or environmental and toxic contaminants. We recommend that you engage suitable consultants to advise you on these matters. 9. We assume that all engineering studies are correct.The plot plans and illustrative material in the report are included only to help the reader visualize the property. 10. We assume that there are no hidden or unapparent conditions of the property,subsoil or structures that render it more or less valuable.We are not responsible for such conditions or for obtaining the engineering studies that may be required to discover them. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 71 11. We assume that the property is in full compliance with all applicable federal,state,and local environmental regulations and laws unless the lack of compliance is stated,described,and considered in the report.We have not made or requested any environmental impact studies in conjunction with the report.We reserve the right to revise or rescind any opinion of value that is based upon any subsequent environmental impact studies.if any environmental impact statement is required by law,the report assumes that such statement will be favorable and will be approved by the appropriate regulatory bodies. 12. Unless otherwise stated in the report,you should assume that we did not observe any hazardous materials on the property. We have no knowledge of the existence of such materials on or in the property;however,we are not qualified to detect such substances,and we are not providing environmental services. The presence of substances such as asbestos,urea-formaldehyde foam insulation and other potentially hazardous materials may affect the value of the property. Our report assumes that there is no such material on or in the property that would cause a loss in value. We do not assume responsibility for such conditions or for any expertise or engineering knowledge required to discover them. We encourage you to retain an expert in this field,if desired.We are not responsible for any such environmental conditions that exist or for any engineering or testing that might be required to discover whether such conditions exist.We are not experts in the field of environmental conditions,and the report is not an environmental assessment of the property. 13. We may have reviewed available flood maps and may have noted in the report whether the property is generally located within or out of an identified Special Flood Hazard Area. However,we are not qualified to detect such areas and therefore do not guarantee such determinations.The presence of flood plain areas and/or wetlands may affect the value of the property. Any opinion of value we include in our report assumes that floodplain and/or wetlands interpretations are accurate. 14. The Americans with Disabilities Act(ADA) became effective January 26,1992.We have not made a specific survey or analysis of the property to determine whether it is in compliance with the ADA.We claim no expertise in ADA issues,and render no opinion regarding compliance of the property with ADA regulations. 15. We assume that the property conforms to all applicable zoning and use regulations and restrictions unless we have identified,described and considered a non-conformity in the report. 16. We assume that all required licenses,certificates of occupancy,consents,and other legislative or administrative authority from any local,state,or national government or private entity or organization have been or can be obtained or renewed for any use on which the opinion of value contained in the report is based. 17. We assume that the use of the land and improvements is confined within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 72 18. We have not made any investigation of the financial standing of actual or prospective tenants unless specifically noted in the report.Where properties are valued with the benefit of leasing,we assume, unless we are informed otherwise,that the tenants are capable of meeting their financial obligations under the leases,all rent and other amounts payable under the leases have been paid when due, and that there are no undisclosed breaches of the leases. 19. We did not conduct a formal survey of the property and assume no responsibility for any survey matters.The Client has supplied the spatial data,including sketches and/or surveys included in the report,and we assume that data is correct, up to date and can be relied upon. 20. Unless otherwise stated,the opinion of value included in our report excludes any additional value attributable to goodwill,or to fixtures and fittings which are only of value,in situ,to the present occupier.We have made no allowance for any plant, machinery or equipment unless they form an integral part of the building and would normally be included in a sale of the building.We do not normally carry out or commission investigations into the capacity or condition of services being provided to the property.We assume that the services,and any associated controls or software,are in working order and free from defect.We also assume that the services are of sufficient capacity to meet current and future needs. 21. In the case of property where construction work is in progress,such as refurbishment or repairs,or where developments are in progress,we have relied upon cost information supplied to us by the Client or its appointed experts or upon industry accepted cost guides. In the case of property where construction work is in progress,or has recently been completed,we do not make allowance for any liability already incurred,but not yet discharged,in respect of completed work,or obligations in favor of contractors,subcontractors or any members of the professional or design team.We assume the satisfactory completion of construction,repairs or alterations in a workmanlike manner. 22. Any allocation in the report of value between the land and the improvements applies only under the stated program of utilization. The separate values allocated to the land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 23. The report is confidential to the party to whom it is addressed and those other intended users specified in the report for the specific purpose to which it refers. Use of the report for any other purpose or use by any party not identified as an intended user of the report without our prior written consent is prohibited,and we accept no responsibility for any use of the report in violation of the terms of this Agreement. 24. We are not required to testify or provide court-related consultation or to be in attendance in court unless we have agreed to do so in writing. 25. Neither the whole report,nor any part, nor reference thereto, may be published in any manner without our prior written approval. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 73 26. We may rely on,and will not verify,the accuracy and sufficiency of documents,information and assumptions provided to it by the Client or others.We will not verify documents,information and assumptions derived from industry sources or that JLL or its affiliates have prepared in the regular course of business.We are not liable for any deficiency in the report arising from the inaccuracy or insufficiency of such information,documents and assumptions. However,our report will be based on our professional evaluation of all such available sources of information. 27. Unless expressly advised to the contrary,we assume that appropriate insurance coverage is and will continue to be available on commercially acceptable terms. 28. We assume that no material changes in any applicable federal,state or local laws,regulations or codes(including,without limitation,the Internal Revenue Code)are anticipated. Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 74 Appendix Appraiser Qualifications Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 75 Valuation Advisory ( )JLL )\‘, W.Cameron Boone,IV, MAI, R/W-AC Executive Director +1713-243-3379 cameron.boone@jULcom Current responsibilities Education Cameron Boone is an Executive Director with JLL Value& Bachelor of Arts,Baylor University Risk Advisory.His experience includes expert witness testimony and appraisal and consulting analysis of real property for a variety of purposes,including Affiliations infrastructure projects,litigation,eminent domain, estate tax planning, and lending. • Appraisal Institute,Member(MAI) • Appraisal Institute,Houston Chapter-Board of Directors Cameron's experience spans a variety of property types (2019-present) including unimproved vacant land,single family • Appraisal Institute,Houston Chapter-President(2023) residential,multi-family residential,industrial, • Member:International Right of Way Association commercial,retail,office,subdivisions and master • UASFLA:Yellow Book Certified planned communities,mixed use development,self- • CCIM:CI 101 Financial Analysis for Commercial storage,shopping malls,television studios,agriculture Investment Real Estate and ranch land,mineral rights,conservation easements, timber land,hotels,recreational land,solar farms, right of way corridors,conservancies,special use properties, and more. Certified General Real Estate Experience Appraiser in the following States: Prior to joining JLL,Cameron was a Valuation Services • Alabama • New Mexico Director for Colliers International Valuation &Advisory • Arizona • New York Services. • Arkansas • North Carolina • While a student,he served as an intern for United States Caiifomia • Ohio Senator Kay Bailey Hutchison in Washington,D.C.and • Colorado • Oklahoma NASA's Johnson Space Center in Houston,Texas. • Florida • Pennsylvania • Kansas • Tennessee Mr.Boone has been a guest lecturer at CLE International • Louisiana • Texas and co-authored"Revisiting the Valuation of Timberland • Mississippi • Virginia -Terminology,Methods,and Case Studies'in the Appraisal Journal(Summer,2011). • Missouri jll.com/value Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 76 ( ))JLL Qualifications Chase Gonzales AnalystAis ..* Value and Risk Advisory,U.S. .th Current responsibilities Chase Gonzales serves as an Analyst I for AL Valuation Advisory in the : Houston office. ie Experience Mr.Gonzales has experience assisting with sales research,report writing, r xi property analysis,and due diligence_ �''-t _ ;,..,, 441. , , , t His eiixpPrience includes single family residential,vacant land, commercial,right of way corridors,and special use properties.He } specializes in linear infrastructure projects. t ri Education and affiliations Bachelor of Science,Oklahoma State University-Stillwater `+ international Right of Way Association i Contact T:+1713-243-3348 f E:it-, gonfat i 1 cur;, I. a t I Y d ill 05.property valuation and tau consulting services are performed by AL YSVuation i,Wwsory `: +a ' Seances,LLC.a*away owned rndaect subsidiary of Jones Lang LaSalle incorporated. x . °•. t Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 77 Appendix Definitions Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 78 Definitions Unless otherwise noted,these definitions have been extracted,solely or in combination,from definitions and descriptions printed in: • Uniform Standards of Professional Appraisal Practice,2020-2021 Edition (USPAP) • The Dictionary of Real Estate Appraisal,Sixth Edition,Chicago, IL:Appraisal Institute,2015 (Dictionary) • The Appraisal of Real Estate, Fourteenth Edition,Chicago, IL:Appraisal Institute,2013 (The Appraisal of Real Estate) Appraisal (noun)The act or process of developing an opinion of value;an opinion of value.(adjective) of or pertaining to appraising and related functions such as appraisal practice or appraisal services. (USPAP) Assignment 1. An agreement between an appraiser and a client to provide a valuation service;(Dictionary) 2. A valuation service that is provided by an appraiser as a consequence of an agreement with a client. (USPAP,2020-2021 ed.) Compensable Damages Damages for which a condemnor is legally required to compensate the owner or tenant of the property that is being wholly or partially condemned. In most jurisdictions, physical invasion of the property by a condemning authority or the taking of some property right must occur before damages are considered compensable. (Dictionary).The special commissioners shall consider an injury or benefit that is peculiar to the property owner and that relates to the property owner's ownership,use,or enjoyment of the particular parcel of real property,but they may not consider an injury or benefit that the property owner experiences in common with the general community,including circuity of travel and diversion of traffic.Texas Property Code,Title 4.Sec. 21.042 Community Damages Damages resulting from a public project that are borne by the"community"at large and which are not specific to singular properties(special damages).These damages include loss of visibility,diversion of traffic, circuitous access and construction inconvenience.State v.Schmidt,867 S.W.2d 769 (Tex. 1993) Deferred Maintenance Items of wear and tear on a property that should be fixed now to protect the value or income-producing ability of the property,such as a broken window,a dead tree,a leak in the roof,or a faulty roof that must be completely replaced.These items are almost always curable.(Dictionary) Depreciation A loss in property value from any cause;the difference between the cost of an improvement on the effective date of the appraisal and the market value of the improvement on the same date. (Dictionary) Easement The right to use another's land for a stated purpose. (Dictionary) Easement Interest Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 79 An interest in real property that transfers use,but not ownership,of a portion of an owner's property. (The Appraisal of Real Estate) Effective Age The age of property that is based on the amount of observed deterioration and obsolescence it has sustained, which may be different from its chronological age. (Dictionary) Effective Date The date on which the analyses,opinions,and advice in an appraisal,review,or consulting service apply. (Dictionary) Entrepreneurial Profit 1. A market-derived figure that represents the amount an entrepreneur receives for his or her contribution to a project and risk;the difference between the total cost of a property(cost of development) and its market value(property value after completion),which represents the entrepreneur's compensation for the risk and expertise associated with development.An entrepreneur is motivated by the prospect of future value enhancement(i.e.,the entrepreneurial incentive).An entrepreneur who successfully creates value through new development,expansion, renovation,or an innovative change of use is rewarded by entrepreneurial profit. Entrepreneurs may also fail and suffer losses. 2. In economics,the actual return on successful management practices,often identified with coordination,the fourth factor of production following land, labor,and capital;also called entrepreneurial return or entrepreneurial reward.(Dictionary) Excess Land;Surplus Land Excess Land:Land that is not needed to serve or support the existing use.The highest and best use of the excess land may or may not be the same as the highest and best use of the improved parcel. Excess land may have the potential to be sold separately and is valued independently. (Dictionary) Surplus Land: Land that is not currently needed to support the existing use but cannot be separated from the property and sold off for another use.Surplus land does not have an independent highest and best use and may or may not contribute value to the improved parcel.(Dictionary) Exposure Time 1. The time a property remains on the market. 2. [A]n opinion, based on supporting market data, of the length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal.(USPAP,2020-2021 ed.) (Dictionary) Fee Simple Estate Absolute ownership unencumbered by any other interest or estate,subject only to the limitations imposed by the governmental powers of taxation,eminent domain, police power,and escheat. (Dictionary) Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 80 Floor Area Ratio(FAR) The relationship between the above-ground floor area of a building,as described by the building code,and the area of the plot on which it stands;in planning and zoning,often expressed as a decimal,e.g.,a ratio of 2.0 indicates that the permissible floor area of a building is twice the total land area. Gross Building Area (GBA) 3. Total floor area of a building,excluding unenclosed areas,measured from the exterior of the walls of the above-grade area.This includes mezzanines and basements if and when typically included in the market area of the type of property involved. 4. Gross leaseable area plus all commons areas. 5. For residential space,the total area of all floor levels measured from the exterior of the walls and including the superstructure and substructure basement;typically does not include garage space. (Dictionary) Gross Leaseable Area(GLA) Total floor area designed for the occupancy and exclusive use of tenants,including basements and mezzanines;measured from the center of joint partitioning to the outside wall surfaces. (Dictionary) Gross Living Area(GLA) Total area of finished,above-grade residential space;calculated by measuring the outside perimeter of the structure and includes only finished, habitable,above-grade living space.(Finished basements and attic areas are not generally included in total gross living area. Local practices,however, may differ.) (Dictionary) Ground Lease A lease that grants the right to use and occupy land. Improvements made by the ground lessee typically revert to the ground lessor at the end of the lease term. (Dictionary) Ground Rent The rent paid for the right to use and occupy land according to the terms of a ground lease;the portion of the total rent allocated to the underlying land.(Dictionary) Highest and Best Use The reasonably probable use of property that results in the highest value.The four criteria the highest and best use must meet are legal permissibility,physical possibility,financial feasibility,and maximum productivity. (Dictionary) Intended Use The use(s)of an appraiser's reported appraisal or appraisal review assignment results,as identified by the appraiser based on communication with the client at the time of the assignment.(USPAP) Intended User The client and any other party as identified, by name or type,as users of the appraisal or appraisal review report by the appraiser, based on communication with the client at the time of the assignment. (USPAP) Jurisdictional Exception An assignment condition established by applicable law or regulation,which precludes an appraiser from complying with a part of USPAP. (USPAP) Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 81 Lease A contract in which rights to use and occupy land,space,or structures are transferred by the owner to another for a specified period of time in return for a specified rent. (Dictionary) Leased Fee Interest The ownership interest held by the lessor,which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires. (Dictionary) Leasehold Interest The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease. (Dictionary) Lease Type Full Service Lease or Gross Lease:A lease in which the landlord receives stipulated rent and is obligated to pay all of the property's operating and fixed expenses.(Dictionary) Modified Gross Lease:A lease in which the landlord receives stipulated rent and is obligated to pay some, but not all,of the property's operating and fixed expenses.Since assignment of expenses varies among modified gross leases,expense responsibility must always be specified. In some markets,a modified gross lease may be called a double net lease,net net lease,partial net lease,or semi-gross lease. Triple Net Lease:A lease in which the tenant assumes all expenses(fixed and variable)of operating a property except that the landlord is responsible for structural maintenance,building reserves,and management.Also called NNN,net net net,or fully net lease. (Dictionary) Absolute Net Lease:A lease in which the tenant pays all expenses including structural maintenance, building reserves,and management;often a long-term lease to a credit tenant. (Dictionary) Legally Nonconforming Use A use that was lawfully established and maintained,but no longer conforms to the use regulations of its current zoning;also known as a grandfathered use. (Dictionary) Load Factor A measure of the relationship of common area to usable area and therefore the quality and efficiency of building area layout,with higher load factors indicating a higher percentage of common area to overall rentable space than lower load factors;calculated by subtracting the amount of usable area from the rentable area and then dividing the difference by the usable area: Load Factor=(Rentable Area- Usable Area)/Usable Area.Also known as add-on factor. (Dictionary) Marketing Time An opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of an appraisal. Marketing time differs from exposure time,which is always presumed to precede the effective date of an appraisal. (Dictionary) Market Rent The most probable rent that a property should bring in a competitive and open market reflecting all conditions and restrictions of the lease agreement,including the rental adjustment and revaluation, Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 82 permitted uses,use restrictions,expense obligations,terms,concessions, renewal and purchase options,and tenant improvements.(Dictionary) Market Value Market Value is defined by the Texas Supreme Court in City of Austin v.Cannizzo,267 S.W.2d 808(Tex 1954) as being: "[T]he price which the property would bring when it is offered for sale by one who desires,but is not obliged to sell,and is bought by one who is under no necessity of buying it,taking into consideration all of the uses to which it is reasonably adaptable and for which it either is or in all reasonable probability will become available within the reasonable future." Partial Taking The taking of part of any real property interest for public use under the power of eminent domain;requires the payment of just compensation. (Dictionary)Also called"partial acquisition." Personal Property 1. The interests, benefits,and rights inherent in the ownership of tangible objects that are considered by the public as being personal;also called tangible personal property. (Dictionary) 2. Identifiable tangible objects that are considered by the general public as being"personal"-for example,furnishings,artwork,antiques,gems and jewelry,collectibles,machinery and equipment;all tangible property that is not classified as real estate. (USPAP) Prospective Opinion of Value A value opinion effective as of a specified future date.The term does not define a type of value. Instead,it identifies a value opinion as being effective at some specific future date.An opinion of value as of a prospective date is frequently sought in connection with projects that are proposed,under construction,or under conversion to a new use,or those that have not yet achieved sellout or a stabilized level of long-term occupancy. (Dictionary) Real Property 1. An interest or interests in real estate. (IVS) 2. The interests,benefits,and rights inherent in the ownership of physical real estate. (USPAP) 3. All rights, interests and benefits related to the ownership of real estate. (Dictionary) Replacement Cost The estimated cost to construct,at current prices as of a specified date,a substitute for the building or other improvements,using modern materials and current standards,design and layout. (Dictionary) Reproduction Cost The estimated cost to construct,at current prices as of the effective date of the appraisal,an exact duplicate or replica of the building being appraised, using the same materials,construction standards,design,layout, and quality of workmanship and embodying all the deficiencies,superadequacies,and obsolescence of the subject building. (Dictionary) Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 83 Stabilized Income An estimate of income,either current or forecasted,that presumes the property is at stabilized occupancy. (Dictionary) Stabilized Occupancy 1. The occupancy of a property that would be expected at a particular point in time,considering its relative competitive strength and supply and demand conditions at the time,and presuming it is priced at market rent and has had reasonable market exposure.A property is at stabilized occupancy when it is capturing its appropriate share of market demand. 2. An expression of the average or typical occupancy that would be expected for a property over a specified projection period or over its economic life. Value The monetary relationship between properties and those who buy,sell,or use the properties.Value expresses an economic concept.As such,it is never a fact but always an opinion of the worth of a property at a given time in accordance with a specific definition of value. In appraisal practice,value must always be qualified- for example,market value,liquidation value,or investment value. (Appraisal Institute Code of Professional Ethics,2003) Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 84 Appendix Project Information I Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 85 MATCH LINE STA 707.00 I i', 1 $ „.1 ' C2 1 11 s ::;; ! $I r i : - Jii YY I ill. i - ,... Q t4: i i n '18 1 1 ..w•.,.,n s i I rMM n,m a ne.: ,.ac��sr.trta m $ '$r . I I Putt MAW. # I 1 „[�,pt ten..,p oo.n. ;41'-11 4' 1 I I I rb h/�bgYN 6�,tact.a IA. t t i ,.� M,,. ..M» I 1 I r Ut...[wa'''!Mt a#Y YtE I nxa.rM i I i ! a I I 'q / 1 1 ,114.1 _ pa iiAti I i F` 4r b I 1 O, s I g R + $ i 1 1..gg s ('1 t I I s Y I r `� 1 I 1 I j s I • i I $ 1, Y . I 1 i : s t I I i vau m 72I iE .a n 1 a $-x3� 8i'' I I n r'- I I IS -.\ N. a 1 gf,i l l l gal ��1 1 . , n O { I i 0 MATCH LINE STA 70 '-A Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 86 JLL Valuation&Advisory Services,LLC (eJLL 4200'iSestheimer Rd.,Suite 1400 Houston,TX 77027 Tel*1 713 243 3300 Far+1 713 327 5552 February 27,2024 29S0PARV Holdings LLC ATTN:Renee Lucas-Controller 2950 W Highway 365 Port Arthur,TX 77640-1377 RE.Jefferson County Drainage Distract 7 Proposed Right of Way AcqL isition Greetings. DE Corp on behalf of Jefferson County Drainage District 7 have enlisted the services of our firm,JLL Valuation&Advisory Services,LLC,to assist with the appraisal and valuation of your property,as it relates to the Rodair Gully improvement project in Jefferson County,Texas The appraiser has already performed a site inspection of the property when it was owned by PARV LLC.if you would like for the appraiser to re-inspect the property with your accompaniment,please respond to this letter and provide your contact information below The inspection process primarily consists of photographing the property and acquisition area and measuring the potentially impacted improvements. Please check one of the boxes below, sign, and email back to Cameron Boone at E-_ E.ill A pre- addressed stamped envelope is also provided as an option to return the completed document.if you have any questions,please feel free to contact Cameron Boone 7131 243-3379. Thank you for your cooperation Sincerely. 1 " — -�:iz— W.Cameron Boone,IV,MAI,R/W-AC Executive Director JLL Valuation&Advisory Services.LLC ❑ Permission is hereby granted for appraisers to enter on my property,for the purpose of appraising my property in connection with the construct:on of the above identified project. ❑ I would like to have myself or have my designated property representative accompany the appraiser during their inspection of my property Granted By-Name Printed Signature Email Contact Number Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 87 Appendix Subject Information Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 88 A Property Details Account Property ID: 255857 Geographic ID: 053300-000-125701-00000 Type: Real Zoning: Property Use: F 1 "REAL, COMM Condo: (HOTEUSTORE/OFFC)" Location Situs Address: 2950 W HIGHWAY 365 PORT ARTHUR, TX 77640 Map ID: 0 Mapsco: 109-99 Legal Description: PT OF LT 11 BLK I & PT L I I BLK 12 & PT LT 14 BLK 25 PORT ACRES 19 16AC Abstract/Subdivision: 053300-000 - PORT ACRES Neighborhood: I09-NA Owner Owner ID: 690276 Name: PARV LLC Agent: 680430 Mailing Address: 2950 W HWY 365 PORT ARTHUR, TX 77640-1377 c'ia Ownership: 100 00/o Exemptions: For privacy reasons not all exemptions are shown online. A Property Values Improvement Homesite Value: SO(+) Improvement Non-Homesite Value: S3.809.039(+) Land Homesite Value: SO(+) Land Non-Horesite Value: $225,344 (+) Agricultural Market Valuation: SO(+) Market Value: S4,034,383(_) Agricultural Value Loss:© $0(-) Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 89 Appraised Value: 54,034.383(=) Homestead Cap Loss: 0 $0(-) Assessed Value: $4,034,383 Ag Use Value: S0 DISCLAIMER Information provided for research purposes only.Legal descnptions and acreage amounts are for appraisal district use only and should be verified prior to using for legal purpose and or documents.Please contact the Appraisal District to verify all information for accuracy A Property Taxing Jurisdiction Owner: PARV LLC %Ownership: 100 0°%0 Entity Description Tax Rate Market Taxable Estimated Freeze Value Value Tax Ceiling 109 PORT ARTHUR ISD 1.326300 S4,034,383 $4.034,383 553,508 02 235 CITY OF PORT ARTHUR 0.64864I 54.034,383 $4.034.383 S26,168.66 343 PORT OF PORT ARTHUR 0.178531 54,034,383 $4,034,383 $7,202.62 755 SABINE NECHES NAV DIST 0.088000 S4.034,383 $4.034,383 $3,550.26 851 DRAINAGE DISTRICT#7 0.320573 54,034,383 $4,034.383 512,933.14 901 JEFFERSON COUNTY 0.359000 54,034,383 $4,034,383 514,483.43 A59 FARM AND LATERAL ROAD 0.000000 54,034,383 $4,034.383 $0.00 CAD JEFFERSON CO APPRAISAL 0 000000 54,034,383 $4.034.383 $0.00 DISTRICT Total Tax Rate:2 921045 Estimated Taxes With Exemptions:5117.846 13 Estimated Taxes Without Exemptions:S117)346 13 Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 90 A Property Improvement-Building Type:Commercial State Code:F 1 Living Area:0 o0sgft Value:$0 Type Description Class CD Year Built SOFT Assessed Value MHPS MOBILE HOME PARK SPACE NA5 2010 1 00 $3,473,280 CPK CONCRETE PARKING LOT NA5 2010 312,146 00 $936,438 Description:Commercial Type:Commercial State Code:F I Living Area:3,912.00sgft Value:SO Type Description Class CD Year Built SOFT Assessed Value POOL POOL HA3 2015 100 57,000 COM COMMERCIAL BUILDING HA3 2010 91200 $66,288 COM COMMERCIAL BUILDING SA3 2020 3.000 00 $363,810 C35 CARPORT/CANOPY HA3 2010 400 00 $6.480 SR 1 STORAGE 1 HA3 2010 400 00 $8,000 C25 CARPORT/CANOPY HA3 2010 400 00 $5.200 IA Property Land Type Description Acreage Sqft Eff Front Eff Depth Market Value Prod.Value S1 Square Foot Syle Type 7 2310 314.938,80 0 00 0.00 S0 SO S1 Square Foot Syle Type 11.9300 519.670.80 0 00 0 00 So 5o Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 91 •Property Roll Value History Year Improvements Land Market Ag Valuation Appraised HS Cap Loss Assessed 2024 N/A N/A N/A N/A N/A N/A 2023 53.809.039 $225,344 $0 54,034.383 SO S4,034,383 2022 53,522.724 $225,344 SO S3,748,068 SO S3,748,068 2021 52,606,479 $225.344 50 S2.831.823 50 S2,831,823 2020 51,733,310 $134,127 S0 51,867,437 SO 51.867,437 2019 51,785,920 $134.130 S0 S1,920,050 S0 S1,920.050 2018 51,316,060 $134,130 $0 51,450.190 SO S 1,450.190 2017 51..332,450 $134.130 $0 51.466.580 S0 51.466.580 2016 51,143,340 S50,620 S0 $1,193,960 50 S 1,193,960 2015 51.138,540 550,620 $0 51,189.160 So 51.189,160 2014 S 1,148.870 550,620 $0 51.199,490 SO 51,199,490 2013 51,151.380 550,620 $0 S 1,202,000 SO S 1,202,000 A Property Deed History Deed Type Description Grantor Grantee Volume Page Number Date 1/1/2022 4/1/2019 WD WARRANTY PORT ARTHUR RV PAR`!LLC 20190113906 DEED PARK HOLDINGS LP 6/22/2016 WD WARRANTY JJAT PROPERTY PORT ARTHUR RV 2016019728 DEED DEVELOPMENT LLC PARK HOLDINGS LP Copyright©Jones Lang LaSalle IP,Inc.2024.Alt Rights Reserved. 92 )57ffLE col 1 NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON,YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST LN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. SPECIAL WARRANTY DEED WITH LIEN IN FAVOR OF THIRD PARTY STATE OF TEXAS } KNOW ALL MEN BY THESE PRESENTS. COUNTY OF JEFFERSON That Port Arthur RV Park Holdings LP.(hereinafter calkd"Graantor".whether one or more), a Texas limited partnership,of the County of Jefferson. State of Texas, also known as PORT ARTHUR RV PARK HOLDINGS,LP,for and in consideration of the sum of Ten and 00/100 Dollars($10.00)to said Grantor in hand paid by the Grantee hereinafter named,the receipt of which is hereby acknowledged,and the further consideration of the execution and delivery by Grantee of one certain promissory note of even date herewith in the ppnncipal sum of Five Million Eighty Thousand DoUars(35,080,000.00),payable to the order ofMobilot)Federal Credit Union,of which part represents funds advancedby Mobiloil Federal Credit Union to the Grantorherein,at the request of and as a loan to the Grantee herein in payment of part of the purchase price of the property herein conveyed,which note is payable as provided in said note and which contains the usual acceleration of maturity and default clauses,and in addition to die vendor's lien retained herein in favor of Mohikril Federal Credit Union,securing its payment,the Grantee herein has executed a Deed of Trust of even date herewith to John 1)oucet,Trustee;has GRANTED,SOLD and CONVEYED,and by these presents does GRANT,SELL and CONVEY unto PARV,LLC(herein called"Grantee", whether one or more),a Texas limited liability company,whose address rs 2950 W.Hwy.365,Port Arthur,Jefferson County,Texas77640,the following described property. BEING 19.16 acres of laud,part of Lot I I,Block 1,Lot 11,Block 12,and Lot 14, Block 25,Pot Acres,City of Port Arthur,recorded in Volume 4,Pages 42-47,Map Records.Jefferson County,Texas,being part of a(Called 30.894)acre tract of land conveyed in HAT Property Development,LLC,recorded in File No.2007010851. Official Public Records,Jefferson County.Texas;said 19.16 acre tract being more fully described by metes and bounds as follows,to wit BEGINNING at a 1/2"steel rod,capped and marked"SOUTEX",found an the South line of a 120'wide dedicated public right of way known as FM Highway 365,for the Northwest corner of a(Called 8.800)acre tract of land conveyed to Richard J.Daley and Jeanette A.Daley,recorded in Fite No.2012002589,Official Public Records, Jefferson County,Texas,and the Northeast corner of the herein described tract; THENCE.South 03 deg.,27 min.,30 sec.,East,on the West line of the(Called 8.800)acre tract and the West 1 ine of a(Called 8.310)acre tract of land known as Tract II conveyed to Caesar Montes and Evelyn Quintandla,recorded in File No. 2015013348,Official Public Records,JeffersonCotnittv.Texas,adistance o1950.73' to a V:"steel rod,capped and marked"SOUTEX", found on the North line of a (Called 8.752)acre tract of land conveyed to Jose Sanchez and(Ilona Sanchez, recorded in File No.2012038672,Official Public Records,Jefferson County,Texas, for the Southwest coma of the(Called 8.310)acre tract and the most Easterly Southeast corner of the herein described tract; Page 1 Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 93 f THENCE,South 86 deg.,32 mitt,30 sec.;West(Called West),on the North line of the(Called 8.752)acre tract,a distance of 104.92'to a 1r2"steel rod,capped and marked"SOUTEX",found for the most Northerly Northwest corner of the(Called 8.752)acre tract and an angle point in the South line of the herein described tract; THENCE,South 35 deg..58 min.,00 sec.,West(Called South 39 deg.,21 min.,17 sec., West),on the Northwest line of the(Called 8.752)acre tract, a distance of 226.95'(Called 226.83')to an"X"mark in concrete found on the Northeast line of a 50' wide Jefferson County Drainage District No. 7 right of way, for the most Westerly corner of the(Called 8.752)acre tract and the most Southerly corner of the herein described tract;from which a 1+2"steel pipe found for the most Southerly Southwest corner of a tract of land conveyed to Richard 1.Daky,recorded in File No.2000003668,Official Public Records,.lefferson County,Texas,hears South 54 deg.,06 ruin.,01 sec.,East(Called South SO deg.,38 min.,43 sec.,East),a distance of 1308.18'(Called 1308.42'); THENCE,North 54 deg.,06 min.,01 sec.,West(Called North 50 deg.,38 min.,43 sec.,West),on the Northeast line of said 50'wide right of way,a distance of 945.20' (Called 945.19')to a I.2"steel rod,capped and marked"SOUTEX",set on the East line of a tract of land conveyed to Jefferson County Drainage District No.7,recorded in Volume 1531. Page 426, Deed Records, Jefferson County, Texas, for the Southwest corner of the herein drernbed tract; from which a concrete Drainage District No.7 monument found for the most Northerly Northwest corner of Brisa Estates,recorded in File No.2014035441,Official Public Records,Jefferson County, Texas,bears South 12 deg.,56 min.,44 sec.,West,a distance of 995-95'; THENCE.North 12 deg.,56 min.,44 sec.,East(Called North 16 deg, 15 min.,37 sec,East),on the East line of said Jefferson County Drainage District No.7 tact,a distance of 145.50'(Coiled 145.65')to a brass disk in concrete found for an angle point in the West line of the herein described tract, THENCE,North 03 deg.,32 min.,10 sec.,West(Called North),continuing on the East line of said Jefferson County Drainage District No.7 tract,a distance of 387.06 (Called 386.61')to a 1,2"steel rod capped and marked"FAUST",found on the South right of way line of said FM Highway un 365.for the Northwest corner of the herein described tract; THENCE,North 86 deg„32 ruin..30 sec.,East(Called East),oo the South fir of way line of said FM Highway 365, a distance of 939.31' to the POINT OF BEGINNING and containing 19.16 acres of tared,more or less. 7'O HAVE AND TO HOLI)the said premises,together with all rights,hercditaments and appurtenances thereto belonging unto Grantee,and Granter's heirs and assigns,forever.And Grantor does hereby bird Grantor and Grantor's heirs,executors and administrators to WARRANT AND FOREVER DEFEND the title to the said property unto Grantee,and Grantee's heirs and assign& against every person whomsoever lawfully claiming or to claim the same or any Pan thereof,but only when the claim is one by,through,or under Grantor,and not otherwise. But it is expressly agreed and stipulated that a vendor's lien is created herein in favor of Mobiloil Federal Credit Union and said Mobiloil Federal Credit Union will hold superior tide in and to the above described property, premises and improvements,and the title in Grantee will not become absolute until the above described note,together with all renewals and extensions thereof, and all interest and other charges therein stipulated,are fully paid;and it shall be the same as if a Page 2 Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 94 vendor's lien was retained in favor of the Grantor herein and assigned by proper assignment to Mobiloil Federal Credit Union without recourse on Grantor in any manner for the payment of said indebtedness. Grantee expressly assumes and agrees to pay all property taxes and standby fees for the property for the year 2019. EXECUTED April 1,2019. Port Arthur RV Park Holdings,LP,a Texas limited partnership By: Port Arthur RV Park Holdings,GP,LLC,a Texas limited liabili company, General Partner • Tim Hendon,Manager BY: Greg Corkran,Manager A ! _ =1i ' PARV, • liabili • • By. tiy• oats, v i Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 95 .endow hen was;lamed m famcc of ire Caanaa P cram and assgnad by proper asagnanera to kbMloil Federal Crodat Union without recourse oo rhatot_n may tonna fot the payment of said mde,Ftednass. property for the y 2019 cqessaly*maw and was:o pay all ca ty Lu andwcdDy ha fat the IDa.CUTED Aga 1,2019. Pon An ur RV Park 2oldiay5,LP.a Tease Laatcd partnership By Part 0.rtbsa RV Pak Lim dmps,UP.W2,a Trtaa noosedltabiarry roan:soy, Gtaetal Partner flv f t 7"u"ip;r gar Aka $Y GRANjIja L1.C,a Tess bunted-waxily company Ely M chael De La Puente.Manager ?age 3 Copyright©Jones Lang LaSalle IP,Inc.2024.Alt Rights Reserved. 96 STATE OF t "- COUNPY OF .-'TYY,ttj l c } BEFORE ME,the undersigned authority,on this day personally appeared Tim Hendon, Manager of Port Arthur RV Park Holdings GP,LLC.a Texas limited liability company,General Partner of Port Arthur RV Park Holdings,LP,a Texas limited partnership, C] known to me $n proved to me on the oath of ix through Db — to be the person whose name is subscribed to the foregoing instrument and acknowledged tome that be executed die same for the purposes and consideration therein expressed,in the capacities therein stated on behalf of and as the act and deed of said Port Arthur RV Paris Holdings GP,LLC,and on behalf of and as the act and deed of said Port Arthur RV Park Holdings,LP. lA 1 GIVEN UNDER MY HAND AND SEAL OF OFFICE ON THIS° AY OF Y 2019. SIGN • OF_Nit. l _ 1 fRA TYPED R PRINTED N OF NOTARY NOTARY PUBLIC,STATE OF (SEAL) My Catmmission Expires: ;;r- et:uNoa ZgPATA .�► ..Notary Pubic.Stets of Texa3 /�.,,.�F. Gortun.WOO**09-06-7071 �`. Notary ID 12394E443 Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 97 STATE OF Iexa cowry O r. Y r BEFORE ME,tbe widersiiped authority,on tkrs day pryoW9y Ktpeared Orcy Ceti-wt.Man=draft Arthur RV Pak Kokbop GP,LLC,a Tares Maned habillty t..,ngletay.3etaa( Plemer m_ofPPet Aram RV Pak Aokki�,IP a Taw bmite t pu p, l+ /moue to me L ,ed to me oeit of atror to be the person:Mosemote u sal ucttked to the Erse[On4 iutumneut Lod stekno ledger!to me tat he mooned tse same for the mtrposo:and oonsidensom therein expressed,no Use capacraar therein mated ae Mhalt maid as Ca aat and dad of acid Port Artta RV Park tfo1dtr cs GF,i LG and m .,dell of aad as the a aoel deed c4 acrid Port Arthur RV Park lio rt mt„LP. t GNEbt UNDER Nfl" HAND AND CPAs OF OFFICE'E ON Ms DAY OF I 1_ i 111401 0.B ACKSIIER• • r s rXITARY 10 110670e14 --- tVvrembw 13.2020 ._ • :„r t i' N( ARYPUIRIC,sTAT OF r.. :sty Contuniasics Espies: Page 3 Copyright©Jones Lang LaSalle IP,Inc.2024.All Rights Reserved. 98 STATE OF IS } COUNTY OF 1+5,4vi ' } BEFORE ME,the undersigned authority,on this day personally appeared Michael De la Fuente,Manager of PARV,LLC,a Texas limited liability company, known:o me proved to me on the oath of or through D L to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed,in the capacity therein stated on behalf of and as the act and deed of said PARV,L.C. GIVE. UNDER MY HAND AND SEAL OF OF CE ON THIS .?7 DAY OF 1019 SICT.'R�Et7 AR 2 TYPED p IRINTED N OF NOTARY NOTARY PUBLIC,STATE OF 7Z f. S ice? My Commission Expires ,uu1n, " cg +•v.y $ELINDA ZAnATA ,...."•'F%tiotuy PubfiO.State of Tex I, = "a'� Comm Expret et+-062021 4.,,,„��� Votlry ID ii390,aa; Af1ER RECORDING RETURN TO: PREPARED IN THE LAN'OFFICES OF ROBERT B.DUVILLt((h p) DUNHAMHALULARK,PLLC 4180 DELAWARE,SUITE 30i BEAUMONT.TEXAS 77706 1409)431d183(0) (888)325-0090(1,0 Page 6 Copyright©Jones Lang LaSalle IP,Inc.2024.AEI Rights Reserved. 99 4# �o :o ],,,ii,',.: +I ; ---* l .! Z I .a , A f III ai ,1 Ili °, 11 II A MI 11 I I ' I 1I 1 i __7 ua F — \ gg ` S i a ERA sy oos` a f (. __ T� N I k h 3 /' i O�qQ .6 LI i s I re y E9 S l r'-'-' '''' ''''') i r _ , .0,.,,.. �a �,9 !fop il, :r 5 p .„0 P''a :fl2f. ¢ boo iai=in0 eg Ooe 1.r.Ox ! S eO_tYos ; 3 I '1)\ 1Ge I ggs -A,V:;: ' a 8 Ee- A 3 = 3 @$ 84 ?